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HB 617

Abandoned property, management of abandoned digital assets provided for, State Treasurer authorized to select a qualified custodian

2025 Regular Session Introduced by Susan DuBose

Alabama bill authorizes State Treasurer to appoint a custodian to manage abandoned digital assets like cryptocurrency and NFTs, establishing procedures for unclaimed property in the digital economy.

Read for the first time and referred to the House Committee on State Government
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Bill Summary · HB 617

Legislative bill overview

HB 617 establishes a framework for managing abandoned digital assets in Alabama and authorizes the State Treasurer to select a qualified custodian to hold these assets. The bill addresses the growing issue of cryptocurrency, NFTs, and other digital property left unclaimed or forgotten by owners, similar to how states manage abandoned physical property and bank accounts.

Why is this important

As digital assets become increasingly common, states need clear legal mechanisms to prevent permanent loss of valuable property and establish who has authority over unclaimed digital holdings. This bill creates a formal process that protects both asset owners (who may reclaim their holdings) and the state's fiduciary interests, while providing a standardized approach to a relatively new problem in property law.

Potential points of contention

  • Custody and security concerns: Delegating digital asset management to a third-party custodian raises questions about cybersecurity, liability if assets are lost or hacked, and what qualifications make a custodian "qualified"
  • Definition and scope of "digital assets": The bill may lack clarity on which types of digital property are covered (cryptocurrency only? gaming items? domain names?), potentially creating disputes about what qualifies
  • Owner reclamation processes: Establishing clear procedures for original owners to reclaim digital assets is crucial but potentially complicated, especially if assets have appreciated significantly or the original owner's identity verification is difficult

Compiled from official sources — confirm details with the bill’s official record.

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