Crypto Assets left unclaimed in California could soon be seized by the CA state (opens in new tab)

(thestreet.com)

9 pointshippich8mo ago10 comments

10 comments

The tweet claims that "Assets left on an exchange for 3 years will transferred to the state, and can then be claimed by the owner." That sounds rather crazy to me.

People leave assets, be they stocks or crypto-currency, on broker accounts for many years all the time. Is there an equivalent law for stocks as well? And how can a customer reset the clock? Just by logging in?

xhkkffbf8mo ago

How do they know the assets are actually in California? Isn't the Blockchain everywhere and nowhere at the same time?

CodesInChaos8mo ago

It's about assets on exchanges. Exchanges know who owns the account and where they live.

> To put it simply, the bill, once passed, allows the state of California to seize cryptocurrencies left unclaimed on exchanges for 3 years, which can then be claimed by their owners.

> Notably, the bill earlier mentioned crypto self-custody provisions which have been deleted.

dataflow8mo ago

Would credit card points, miles, etc. fall in the same bucket ("digital financial assets")?

moomin8mo ago

Don’t think any of those things are transferable, so the question is moot. They’re not really assets the way crypto is.

xhkkffbf8mo ago

They are more transferable than not. Many companies allow people to gift their miles. I agree there aren't liquid marketplaces and easy ways to just send them like Venmo, but that doesn't mean they aren't transferable.

dataflow8mo ago

They're definitely transferable in some cases, and there are often secondary markets for these that don't require transfers at all. (e.g., use points to buy gift card that you then use or transfer to someone else in exchange for goods or money.)

nivertech8mo ago

Crypto per se isn’t an asset class, it’s merely a form, not a substance. It can anything: from currency, to debt, to security, to derivatives, and anything hybrid or in between. Similarly like paper can be used for banknotes, cheques, stock certificates, bonds, etc.

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10 comments

CodesInChaos8mo ago

The tweet claims that "Assets left on an exchange for 3 years will transferred to the state, and can then be claimed by the owner." That sounds rather crazy to me.

xhkkffbf8mo ago

How do they know the assets are actually in California? Isn't the Blockchain everywhere and nowhere at the same time?

CodesInChaos8mo ago

It's about assets on exchanges. Exchanges know who owns the account and where they live.

> To put it simply, the bill, once passed, allows the state of California to seize cryptocurrencies left unclaimed on exchanges for 3 years, which can then be claimed by their owners.

> Notably, the bill earlier mentioned crypto self-custody provisions which have been deleted.

dataflow8mo ago

Would credit card points, miles, etc. fall in the same bucket ("digital financial assets")?

moomin8mo ago

Don’t think any of those things are transferable, so the question is moot. They’re not really assets the way crypto is.

xhkkffbf8mo ago

dataflow8mo ago

nivertech8mo ago

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