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Dennis Porter
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CEO & Co-Founder @SatoshiActFund | Unlocking Bitcoin's Potential | 9 bills into law | On Offense For Bitcoin
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Dennis Porter
04-02
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I know people love to pick on California, but this bill is not about seizing people’s Bitcoin. Every state in the country has unclaimed property law which requires any “dormant property” be “escheated” to the state. The way this works is that if you have your Bitcoin on a Coinbase exchange account and you don’t login, don’t trade, and don’t transact for 3 years then Coinbase is legally required to contact the customer to say “hey did you lose the ability to access your property? Please respond to us to let us know. If you don’t we have to send the assets to the state”. If the customer doesn’t respond to Coinbase then the assets go into the unclaimed property fund, where the customer can still retrieve their assets. This mechanism exists across all forms of property across all 50 states, including your stock exchange account. There’s a lot of debate over how these unclaimed property funds should work, but in practice their purpose is to help reconnect people with their lost property. The interesting thing about the California bill is that when Coinbase sends your crypto to California, it’s kept in its native form instead of being liquidated into cash. This is very good for consumers because when you go reclaim your property within a given period of time you can reclaim the bitcoin instead of the cash equivalent. Also to be clear these types of law do not apply to self custodied Bitcoin.
Bitcoin Teddy
@Bitcoin_Teddy
04-01
California just passed a bill to seize Bitcoin left idle on exchanges. After 3 years of inactivity, assets can be taken by the state under 'Unclaimed Property' laws. Bill now heads to the Senate.
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