CA SB822

Digital financial assets are explicitly classified as intangible property subject to California's Unclaimed Property Law, escheating to the state after 3 years of inactivity

Holders must notify apparent owners of digital financial assets via certified mail (if address available) or electronically 6-12 months before escheatment, with specific warning language and a Controller-prescribed form that can restart the escheatment period

Digital financial assets must be transferred unliquidated (not converted to cash) to the Controller's cryptocurrency custodian within 30 days after the final reporting date

The Controller may convert digital financial assets to fiat currency between 18-20 months after the required report filing; valid claimants receive either the original asset or net sale proceeds

The Controller may select licensed custodians for digital asset management based on criteria including storage security, cybersecurity measures, private key management capability, and compliance with federal Bank Secrecy Act anti-money laundering requirements