A new Virginia crypto law changes how unclaimed crypto assets are handled statewide. On April 15, 2026, Governor Abigail Spanberger signed House Bill 798 into law, requiring in-kind custody for dormant digital assets.
The law prevents immediate liquidation and introduces a mandatory holding period before any sale, reducing forced selling risks. Liquidating tokens immediately upon receipt of custody is no longer allowed.
This House Bill 798 goes into effect on July 1, 2026, and applies to crypto accounts that have been inactive for at least five years.
Crypto State Law Changes Custodial Services For Crypto Assets
House Bill 798 has changed Virginia’s disposition of the Unclaimed Property Act so that it includes Digital assets. Under new crypto custody laws, custodians must provide the original token form of the unclaimed cryptocurrency that they transferred to the state.
Prior to House Bill 798, states would liquidate cryptocurrencies once in possession. However, this process exposed consumers to potential losses due to market declines while awaiting sale.
The Virginia crypto law creates a structured timeline regarding the time during which assets can be liquidated. A minimum of one year must pass from the completion of reporting requirements prior to the liquidation of assets.
Therefore, liquidation cannot create undue pressure to sell and provide price recovery opportunities for unclaimed cryptocurrencies.
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New Clarity Regarding Inactive Crypto Accounts
According to the Virginia crypto law, dormant accounts become “abandoned” after a minimum of five years of inactivity. Active status is maintained for user-activated accounts via login activity or transaction activity.
The definition of inactive accounts eliminates confusion regarding what constitutes an inactive account for custodians managing digital assets. Digital assets are generally defined as any value used to facilitate exchange or store value.
However, gaming items and non-cashable rewards remain specifically exempted under the Virginia crypto law.
State And Industry Support Signals Regulatory Convergence
Leaders in the blockchain and crypto industry expressed support for the legislative action taken by the state. Paul Grewal, chief legal officer of Coinbase, stated that he was pleased the legislature included the provision requiring in-kind crypto custody.
Grewal cited the fact that this type of legislation will help prevent the premature liquidation of customers’ assets. Earlier, the Virginia Blockchain Council also endorsed the legislation, stating that it represents a critical first step in modernizing financial regulations.
These statements reflect an increasingly cooperative relationship between regulators and companies in the crypto space.
States Trend Indicates Broader Adoption Of Regulations
Virginia becomes part of a growing list of jurisdictions that are including unclaimed digital properties into unclaimed property laws. California has already passed legislation covering unclaimed cryptocurrencies.
Arizona allows the state to seize control of a user’s unclaimed cryptocurrencies after a minimum of three years of inactivity. Once seized, these assets are placed into a state reserve fund.
This interstate trend demonstrates an increased regulatory presence throughout the United States related to digital assets regulation.
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