HB617 Summary

• Creates procedures for the State Treasurer to manage digital assets (virtual currency, cryptocurrency, or other digital-only assets) that are presumed abandoned in Alabama.

• Establishes a three-year abandonment threshold for digital asset accounts, beginning from when written or electronic communication is returned undelivered, or from the last account activity if communications cannot be tracked.

• Authorizes the State Treasurer to select a qualified custodian to hold abandoned digital assets, considering security measures, private key management, asset transfers, regulatory compliance, and anti-money laundering procedures.

• Requires custodians to transfer abandoned digital assets to the qualified custodian within 30 days and maintain them in native form for at least two years before the State Treasurer may authorize sale.

• Allows the State Treasurer to sell abandoned digital assets only at prevailing market price or by commercially reasonable methods if no market price exists.

• Becomes effective October 1, 2025.