Clarifying Misinformation about California’s Bitcoin Bill
Recently, Marty Bent and Matt Odell’s popular podcast, Tales From The Crypt (TFTC), shared a tweet that garnered 1.2 million views, but unfortunately, it contained wildly inaccurate information about bitcoin (BTC).
The podcasters claimed that California had passed a bill allowing the state to seize BTC left idle on exchanges. However, the truth is far from what was portrayed in the tweet.
Assembly Bill 1052, which recently passed the California State Assembly, actually aims to apply existing unclaimed property laws to digital assets held on exchanges or custodial platforms. This bill does not give California the authority to confiscate assets or declare them abandoned after a certain period of inactivity.
Understanding California’s Unclaimed Property Laws
Under California’s current unclaimed property laws, if a user has not shown any ownership interest in their assets for three years, those assets may be transferred to the state as unclaimed property. However, this does not mean that California can seize and benefit from abandoned BTC.
It is important to note that California is required to hold unclaimed assets in their original forms, such as BTC or ETH, without liquidating them into USD. The rightful owners of these assets can reclaim them at any time by providing proof of their identity and ownership.
Additionally, before any assets are transferred to the state, custodians like exchanges must make multiple attempts to contact the owner. Only if the owner remains unresponsive can the custodian consider transferring the property to the state for safekeeping.
Correcting the Misinformation
After more than nine hours, TFTC issued a correction to their original tweet, clarifying the inaccuracies about California’s bitcoin bill. It is crucial to verify information before sharing it, especially when it comes to legislative matters.
It is essential for everyone, including podcasters and influencers, to ensure that the information they share is accurate and verified. In the world of cryptocurrency, misinformation can lead to confusion and panic among investors and users.
By understanding the actual implications of bills like AB 1052 and clarifying any misconceptions, we can contribute to a more informed and transparent discussion within the crypto community.
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