TL;DR
- Virginia’s HB 798 updates unclaimed property rules to cover digital assets and bars forced liquidation for at least one year after transfer into state custody.
- Crypto in dormant accounts is treated as abandoned after five years of inactivity, and the law takes effect on July 1, 2026.
- Claimants who come forward within that window can receive the greater of later sale proceeds or the asset’s full market value at claim.
Virginia has enacted a new rule for dormant crypto that blocks immediate forced liquidation and requires assets to be held in their original form for at least one year after delivery to the state. The law stands out because it treats digital assets as something more specific than cash, recognizing that liquidation timing can reshape value for owners. Signed by Governor Abigail Spanberger, HB 798 updates Virginia’s unclaimed property statute to cover digital assets and creates a formal process for handling inactive custodial accounts that fall under state custody after extended inactivity.
The measure applies once crypto in dormant accounts is presumed abandoned after five years without activity. That threshold matters because it defines when the state can begin acting, while still delaying any sale after assets are transferred. Introduced by Delegate C.E. Cliff Hayes Jr., the bill amends the Virginia Disposition of Unclaimed Property Act and moved decisively through the legislature, passing the House 96-2 and the Senate 40-0 before being signed into law. The measure now takes effect on July 1, 2026, giving Virginia a framework specifically tailored to digital asset accounts.
A One-Year In-Kind Hold Changes the Process
The most consequential part of the statute is its in-kind requirement. Instead of converting dormant crypto to dollars as soon as it reaches state custody, Virginia will require qualifying assets to remain in native form for at least one year. Holders with full private key access must transfer dormant digital assets in that original form, while holders with only partial access must retain them until a full transfer becomes possible. The law also addresses technical barriers, requiring written notice when a holder reasonably believes liquidation cannot be completed, after which the administrator can determine another course of action.
That structure changes the balance between administration and owner protection. Anyone who files a claim during the one-year window can receive whichever is greater: the proceeds of a later sale or the market value at the time of the claim. The broader implication is that Virginia is moving with other states that are reconsidering whether dormant crypto should be treated like ordinary abandoned property. Supporters argue that forced liquidation can create tax consequences without an owner’s awareness and erase upside if prices recover after assets have already been handed over, turning custody rules into a meaningful policy issue.
