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Virginia Governor Signs Law Protecting Dormant Crypto From Forced Liquidation
TL;DR
Virginia's Governor has signed HB 798, which protects dormant crypto from forced liquidation for one year. The law requires digital assets to be held in their original form until a full transfer is possible.
Key points
- Virginia's HB 798 extends unclaimed property rules to digital assets
- The law bars liquidation of dormant crypto for at least one year
- Holders with partial key access must retain assets until full transfer
- Crypto is presumed abandoned after five years of inactivity
Mentioned in this story
Virginia Governor's OfficeAbigail SpanbergerC.E. Cliff Hayes Jr.
HB 798
In brief
- Virginia's HB 798 extends unclaimed property rules to cover digital assets.
- The law bars the state from liquidating dormant crypto for at least one year after delivery.
- Holders with partial key access must retain assets until a full transfer is possible.
Virginia Governor Abigail Spanberger has signed legislation updating the state's unclaimed property rules to cover digital assets, requiring that dormant crypto be held in its original form for at least one year before any sale can proceed.
Introduced by Delegate C.E. Cliff Hayes Jr. [D], HB 798 amends the Virginia Disposition of Unclaimed Property Act to create a statutory framework for dormant digital asset accounts.
Crypto held in dormant accounts is presumed abandoned after five years of inactivity, according to the legislation.
Spanberger signed the bill on Monday; it takes effect July 1, 2026.
The law puts Virginia in step with a rising movement among states to stop dormant crypto from being automatically converted to cash.
Forced liquidation can trigger tax liabilities for consumers without their knowledge or consent, and wipes out any potential upside if prices rise after assets are handed over to the state.
HB 798 passed the House 96-2 and cleared the Senate 40-0 before reaching Spanberger's desk.
Coinbase Chief Legal Officer Paul Grewal heralded the law as “good news” in a tweet, adding that it, “updates the state's unclaimed property statute to cover digital assets and ensures they are escheated in-kind."
Some good news out of Virginia. Governor @SpanbergerForVA signed HB 798 into law last night. The law updates the state’s unclaimed property statute to cover digital assets and ensures they are escheated in-kind. Thank you Virginia. pic.twitter.com/UxXwKLCV7q
— Paul Grewal (@iampaulgrewal) April 14, 2026
"I believe this is positive for the industry as it helps lay out procedures and recognise digital assets value," Paul Howard, senior director at crypto trading firm Wincent, told , adding that it is "defining the State custody of unclaimed custodial assets, rather than State control of private assets."
Q&A
What does Virginia's HB 798 law change about dormant crypto?
HB 798 extends unclaimed property rules to digital assets, preventing liquidation of dormant crypto for at least one year.
How long must dormant crypto be held before liquidation in Virginia?
Dormant crypto must be held for at least one year after delivery before any liquidation can occur.
What happens to crypto accounts after five years of inactivity in Virginia?
Crypto held in dormant accounts is presumed abandoned after five years of inactivity under the new legislation.
Who introduced the HB 798 legislation in Virginia?
The HB 798 legislation was introduced by Delegate C.E. Cliff Hayes Jr. from the Democratic Party.
