Committee unanimously moves to treat dormant digital assets as unclaimed property
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Summary
H.B.519 would add digital assets to Utah’s unclaimed-property framework; the treasurer said custodians would be identified, dormancy would match securities (three years), and the treasurer would hold assets before liquidation. Committee passed the first substitute and placed the bill on consent.
Representative Tuscher presented H.B.519 to clarify how the state should handle unclaimed digital assets such as custodial wallets, describing it as filling a gap in Utah’s Revised Uniform Unclaimed Property Act. State Treasurer Marlo Oaks testified the bill mirrors current securities treatment and would allow the treasurer to identify custodians to hold assets until owners are located.
Oaks said dormancy for custodial digital asset accounts would be three years in line with other securities; custodians would send notice mailers and the treasurer would hold an asset for an additional three years before liquidation if owners remain unlocated. "If there are no logins, no trades, no transactions, and no contact, that's what would be considered dormant," Oaks said in response to committee questions.
Public commenters included fidelity and industry representatives who supported the clarity the bill provides, and at least one witness raised constitutional or jurisdictional concerns about state authority to treat some digital assets as unclaimed property. After discussion the committee favorably recommended the first substitute unanimously and placed H.B.519 on consent.