California Governor Gavin Newsom has signed SB 822 into law, making California the first state to explicitly protect unclaimed cryptocurrency from mandatory liquidation. The law ensures that digital assets are preserved in their native form rather than being converted to cash before being handed over to state custody. Under the new legislation, holders must notify asset owners 6-12 months before transfer and are required to transfer the exact asset type, private keys, and quantity to the state's cryptocurrency custodian within 30 days after the final report date. The state controller may convert unclaimed cryptocurrency to fiat currency 18-20 months after filing, allowing valid claimants to recover the original assets or the proceeds from their sale.