Virginia bars sale of dormant crypto for at least one year

Virginia Gov. Abigail Spanberger signed HB 798, updating the state’s unclaimed property law to cover digital assets. The law requires dormant cryptocurrency delivered to the state to be held in its native form for at least one year before any sale.

The bill, introduced by Delegate C.E. Cliff Hayes Jr., passed the House 96-2 and the Senate 40-0. It takes effect July 1, 2026, and establishes that custodial wallets with five years of inactivity are presumed abandoned.

Under the law, holders with full private-key access must transfer dormant digital assets to the state in-kind. Holders who have only partial access must retain assets until a full transfer is possible. The state treasurer may not sell delivered digital assets for at least one year after receipt.

The statute requires holders who face technical barriers to notify the state administrator in writing that they ‘reasonably believe it cannot liquidate digital assets.’ The administrator may later direct a holder to liquidate reported but unremitted assets, but not less than one year after a report is filed.

If an owner files a claim within the allowed window, the law entitles them to the greater of the sale proceeds or the market value at the time of the claim.

Supporters argued forced liquidation can create tax liabilities for owners and erase potential gains if prices rise after escheatment. Coinbase Chief Legal Officer Paul Grewal called the law ‘good news’ in a social media post. Paul Howard, senior director at trading firm Wincent, described the five-year abandonment timeline as ‘reasonable’ and urged officials to work with reputable liquidity providers when sales are needed.

Virginia’s action follows other states that have set specific rules for unclaimed digital assets. Last October, California enacted a law that generally bars forced liquidation for about 18 to 20 months after a report is filed and requires in-kind handling in many cases. The July 1, 2026 effective date gives custodians and state officials time to set reporting and custody procedures.