The California State Assembly has passed two bills concerning digital assets: AB 1052 and AB 1180. AB 1052, approved by a 78-0 vote, classifies long-inactive cryptocurrency assets held on exchanges as unclaimed property. If an account holder does not interact with their exchange account for three years, the assets may be transferred to state custody and must be held by a licensed custodian in their original form, such as Bitcoin, rather than being liquidated. Owners can reclaim their assets at any time by proving ownership. The bill does not apply to self-custodied wallets, only to assets held on exchanges or custodial platforms. AB 1180, also passed unanimously, would permit California state agencies to accept digital assets, including Bitcoin, for payments required under the Digital Financial Assets Law (DFAL). The Department of Financial Protection and Innovation (DFPI) is tasked with developing regulations to implement this, with the law set to take effect on July 1, 2026, if enacted. A pilot program would run until January 1, 2031. The DFPI must submit a report to the Legislature by January 1, 2028, detailing the number and value of cryptocurrency transactions processed and any technical or regulatory challenges encountered. Both bills now move to the California Senate for further consideration.