Wilson G. Barmeyer

State treasury regulators in US states are taking steps to apply unclaimed property laws to inactive cryptocurrency accounts and other digital assets. Over the past few years, more than two dozen states have enacted statutes in this area. Most statutes require a holder to liquidate inactive customer assets and deliver the liquidation proceeds to the state treasuries as abandoned property.

The unclaimed property landscape will continue to evolve rapidly in 2026. States are modifying their enforcement methods and broadening the reach of their statutes while simultaneously facing increased legal challenges from aggrieved property owners. 1. The proliferation of self-review “invitations” as an initial step for regulatory enforcement The methods state regulators use to enforce unclaimed property laws continue to transform and expand.

A struggling broker-dealer’s efforts to close all of its retail customer accounts by applying theories of abandonment, including mischaracterizing securities as “worthless” and making misstatements with respect to state unclaimed property processes, resulted in a complete victory for the SEC in federal court litigation in Nevada on September 30, 2025.1 The court decision provides a striking example of the misapplication of escheatment laws and the severe consequences for a firm that...