Governor Abigail Spanberger signed House Bill 798 on April 14, establishing new requirements for how Virginia handles dormant cryptocurrency accounts. The legislation, effective July 1, 2026, mandates that the state hold unclaimed digital assets in their original form for at least one year before liquidation—addressing a significant concern for both crypto industry employers and their workforce.
New Framework for Dormant Accounts
Under the updated statute, cryptocurrency accounts showing no owner activity for five years will be presumed abandoned and transferred to state custody. The key change requires "in-kind" transfer, meaning Virginia must take possession of the actual tokens rather than immediately converting them to fiat currency.
The law defines digital assets as representations of value functioning as a medium of exchange, unit of account, or store of value. It excludes non-transferable items like in-game currencies and reward points.
During the one-year holding period, original owners who reclaim their property can receive their assets in cryptocurrency form if unsold. If liquidated, claimants receive either the sale proceeds or current market value—whichever is greater. This provision protects users from missing potential gains during market appreciation, a common issue under previous frameworks where immediate liquidation was standard practice.
Compliance Requirements for Crypto Firms
The legislation introduces specific operational requirements for exchanges and custody providers operating in Virginia. Companies must transfer assets directly to the state if they control the associated private keys. When control remains partial, holders must retain assets until transfer becomes feasible.
The state retains authority to direct liquidation when it cannot safely custody certain assets, providing flexibility for unusual or high-risk tokens.
Custody providers must also track owner activity that resets the dormancy period, including transactions, account access, and other actions demonstrating account awareness.
Impact on Crypto Industry Employment
Coinbase Chief Legal Officer Paul Grewal endorsed the measure, noting it preserves digital assets in their native form during the unclaimed property process. For crypto professionals, the law signals growing regulatory maturity in how states approach digital asset custody—a development that may influence where blockchain companies choose to establish operations.
Virginia joins California and other jurisdictions updating unclaimed property statutes for the digital age, though implementation approaches vary. As more states adopt similar frameworks, compliance and legal roles within crypto firms will likely see increased demand for professionals versed in state-level digital asset regulations.
