Key Takeaways:
Virginia Gov. Abigail Spanberger signed HB 798 on April 13, 2026, requiring exchanges to transfer dormant crypto to the state in-kind after 5 years. Coinbase CLO Paul Grewal called the law good news, as it prevents immediate forced liquidation of unclaimed digital assets. The law takes effect July 1, 2026, giving crypto custodians roughly 2.5 months to prepare operational compliance changes. Self-custody through non-custodial wallets remains the only way to keep digital assets fully outside escheat reach. Virginia Law Requires Dormant Crypto Held In-Kind by State for at Least One YearUnder the new framework, property held in a digital asset account is presumed abandoned after five years of inactivity. Any ownership action by the account holder, such as buying or selling assets, accessing the account, or communicating with the custodian, resets that clock.
Once the state receives the digital assets, it must hold them for at least one year before any potential sale. Owners who file a claim before that one-year period ends can receive the higher of either the sale proceeds or the market value of the asset at the time of the claim.
Owners who come forward after the one-year hold can receive the asset itself if the state still holds it, or the sale proceeds if it has been liquidated. The bill passed the Virginia House 96-2 on Feb. 6, 2026, and cleared the Senate 40-0 on March 4, 2026. Delegate C.E. Cliff Hayes Jr. (D) prefiled the legislation Jan. 13, 2026.
