Sponsors (5)
The bill protects owners (especially retirees) and clarifies digital-asset custody by requiring death-confirmation and setting federal standards, but it reduces State recoveries and creates compliance costs and potential delays that could be borne by institutions, taxpayers, or customers.
Owners — especially retirees — are less likely to have securities, digital assets, or investment accounts turned over to State unclaimed-property programs without confirmed death because the bill requires death-confirmation before escheatment.
Digital-asset holders (including small businesses) receive clearer statutory definitions of 'digital asset' and explicit custodian responsibilities, providing greater legal protection and certainty for custody and recovery.
Financial institutions gain a single federal standard (including permissible death-confirmation methods), reducing legal uncertainty and inconsistent State requirements.
States will have reduced ability to recover unclaimed property, potentially lowering revenues used to fund public services and programs.
Banks, exchanges, and custodians will incur compliance costs to perform periodic death-checks and maintain records; those costs may be passed to customers through higher fees or reduced services.
Heirs and estates could face longer delays accessing assets because extended holdback periods (3–5 years) can prolong resolution when institutions misapply rules or delay confirmations.
Based on analysis of 2 sections of legislative text.
Creates federal rules that generally bar institutions from turning securities, investment accounts, or digital assets over to State unclaimed‑property programs except after multi‑year verification and death/contact confirmation.
Official title: To prevent the premature seizure of an individual's securities, digital assets, or investment accounts in the custody of a financial institution under State escheatment laws, and for other purposes.
Introduced April 16, 2026 by Sam T. Liccardo · Last progress April 16, 2026
Stops banks, brokerages, and other covered financial institutions from turning over securities, investment accounts, or digital assets to State unclaimed‑property programs except in narrow, time‑limited circumstances tied to confirmed death or long absence of contact. It sets multi‑year waiting periods, defines covered assets and institutions, requires periodic death checks for retirement‑age account holders, specifies approved methods to confirm death, and preempts conflicting State escheat rules while preserving States’ rights to communicate with owners and seek remedies.