Virginia Governor Abigail Spanberger has signed legislation updating the state’s unclaimed property rules to include digital assets. The law, HB 798, requires dormant cryptocurrency accounts to be held in their original form for at least one year before the state can sell them, preventing automatic liquidation that can trigger tax bills for owners.
Virginia has enacted a new law governing how the state handles unclaimed cryptocurrency. Governor Abigail Spanberger signed HB 798, which extends the Virginia Disposition of Unclaimed Property Act to cover digital assets.
The legislation presumes crypto in dormant accounts is abandoned after five years of inactivity. Crucially, it bars the state treasurer from selling any delivered digital assets for a minimum of one year.
“This likely helps strengthen Virginia as a State where corporations and individuals can feel confident in domiciling their holdings or estates,” said Paul Howard, senior director at crypto trading firm Wincent. Coinbase Chief Legal Officer Paul Grewal also heralded the law as “good news” in a tweet.
The law provides specific protocols for different types of asset access. Holders with full private keys must transfer dormant crypto to the state in its native form.
Those with only partial key access must retain the assets until a full transfer is possible. The bill also protects holders facing technical barriers from immediate liquidation requirements.
If an owner files a claim within the one-year holding window, they are entitled to the greater of the sale proceeds or the asset’s market value at the time of the claim. This approach aligns with a similar law signed in California last October.
The legislation passed with overwhelming bipartisan support, clearing Virginia’s House 96-2 and the Senate 40-0. It is scheduled to take effect on July 1, 2026.
