Virginia Governor Abigail Spanberger signed House Bill 798 into law on April 15, 2026. The new legislation, effective July 1, 2026, mandates custodians transfer dormant cryptocurrency assets in-kind to the state after five years of inactivity. It prohibits immediate liquidation, requiring a one-year waiting period.
A new law in Virginia changes how unclaimed cryptocurrency assets are handled statewide. Governor Abigail Spanberger signed House Bill 798 on April 15, 2026, requiring custodians to transfer dormant assets in their original token form.
The law prevents immediate liquidation and introduces a mandatory one-year holding period for the state before sale. This aims to reduce risks from forced selling and allows for potential price recovery.
The legislation applies to digital asset accounts inactive for at least five years. It updates Virginia’s Unclaimed Property Act to specifically include digital assets.
Under the new rules, an account becomes “abandoned” after five years without user activity. The law provides clarity for custodians by defining inactivity as lack of login or transaction activity.
Industry leaders expressed support for the legislative action. Paul Grewal, chief legal officer of Coinbase, stated that he was pleased the legislature included the provision requiring in-kind crypto custody.
Grewal cited that this will help prevent premature liquidation of customers’ assets. The Virginia Blockchain Council also endorsed the bill as a critical step in modernizing financial regulations.
Virginia joins other states like California and Arizona that have incorporated unclaimed digital assets into their laws. This trend indicates broader regulatory adoption of frameworks for cryptocurrencies across the United States.
