California just enacted legislation that could reshape how crypto holders view centralized exchanges. Under the new law signed by Gov. Newsom, any Bitcoin or other cryptocurrency held in dormant exchange accounts for three years or longer may be classified as "unclaimed property"—meaning the state could potentially claim custody of these digital assets.

This move affects anyone with inactive accounts on major trading platforms. The law essentially treats cryptocurrency the same as traditional unclaimed bank accounts, creating a significant compliance consideration for both users and exchanges operating in California. It raises important questions about asset security, custody rights, and state authority over digital holdings.