Governor Abigail Spanberger has signed House Bill 798 into law, establishing a pioneering regulatory framework for how the Commonwealth of Virginia manages unclaimed cryptocurrency. The legislation, which takes effect on July 1, 2026, mandates that the state treasury must retain dormant digital assets for a minimum of one year before any liquidation can occur.
The law amends the Virginia Disposition of Unclaimed Property Act to explicitly cover digital assets. Crypto held in accounts is presumed abandoned after five years of inactivity. Upon escheatment to the state, the Virginia Department of the Treasury is now barred from selling these assets for at least 12 months. This custodial period provides owners a meaningful window to claim their original assets in-kind, rather than receiving only the cash equivalent from the sale date—a practice that previously risked locking in losses during volatile market swings.
Operational details are specified within the bill. Holders with full private key access must transfer dormant assets to the state in their native form. Those with only partial access must retain the assets until a full transfer is possible. The law also includes provisions for holders facing technical barriers to liquidation, requiring written notification to the state administrator.
The bill received overwhelming bipartisan support, passing the Virginia House 96-2 and clearing the Senate 40-0. Coinbase Chief Legal Officer Paul Grewal praised the move on social media, stating it "updates the state's unclaimed property statute to cover digital assets and ensures they are escheated in-kind." Industry experts, like Paul Howard of Wincent, noted the law helps define state custody procedures and could strengthen Virginia's appeal as a domicile for crypto holdings.
This action places Virginia at the forefront of a growing state-level trend. California enacted a similar law (Senate Bill 822) in October 2025, imposing an 18-20 month waiting period. Other states, including Ohio and Wyoming, are examining their own unclaimed property laws concerning digital assets. The Uniform Law Commission has also begun preliminary discussions on a potential model act for nationwide standardization.
