Bill Summary — HB 6990
Title: AN ACT CONCERNING THE SEIZURE AND FORFEITURE OF VIRTUAL CURRENCY AND VIRTUAL CURRENCY WALLETS
Bill No.: HB 6990
Introduced: February 19, 2025
Status: Signed by Governor (June 23, 2025)
Note: The legislative text of HB 6990 was not provided. This summary is based on the bill title, the listed subjects, and the bill’s legislative history. Where the bill text is not available, I identify the likely and typical provisions such a bill would contain and explicitly note those as anticipatory rather than verbatim content.
Purpose / Intent
The bill addresses how law enforcement and prosecutors may seize, hold, and forfeit virtual currency (cryptocurrencies) and associated storage devices or accounts (virtual currency wallets). Its intent is to adapt existing seizure and forfeiture law and procedures to the technical characteristics of digital assets, and (based on subjects listed) to clarify disposition of proceeds (including potential allocation to the Criminal Injuries Compensation Fund).
Procedural Status & Timeline
- Introduced to Joint Committee on Banking: 2025-02-19
- Public hearing held: 2025-02-27
- Referred to Judiciary Committee (subsequent action): March–April 2025
- House and Senate considered and adopted House Amendment Schedule A (House Amend. Sch. A) and concurred: May 8–29, 2025
- Transmitted to Secretary of the State: June 5, 2025
- Transmitted to Governor: June 9, 2025
- Signed by Governor: June 23, 2025
Key Provisions (based on bill title and subjects — text not provided)
The enacted law most likely includes provisions to do some or all of the following:
- Define terms such as “virtual currency,” “virtual currency wallet,” and “custodian” for statutory clarity.
- Authorize law enforcement to seize virtual currency and wallets pursuant to warrants, arrests, or as evidence in criminal investigations.
- Establish procedures for civil and/or criminal forfeiture of virtual currency, including:
- Standards for showing probable cause or preponderance of evidence.
- Notice requirements to affected persons and third-party claimants.
- Timeframes and procedures for filing petitions for remission or release.
- Address custody, inventory, and conversion issues for seized digital assets:
- Procedures for secure storage, transfer to state custody, and, if necessary, conversion to fiat currency.
- Accounting and valuation rules to determine the value at seizure or disposition.
- Specify how forfeiture proceeds are allocated — the bill’s subject list references the Criminal Injuries Compensation Fund, suggesting some proceeds may be directed there or to other statutorily-specified funds.
- Provide safeguards or limitations to protect innocent owners or third-party interest holders (e.g., escrow, claimant hearings).
- Establish recordkeeping, auditing, and reporting requirements for seizures and forfeitures involving virtual currency.
Who Is Affected
- Law enforcement agencies and prosecutors — additional authority and procedural duties for handling digital assets.
- Individuals and entities holding virtual currency — potential subject to seizure and forfeiture in criminal or civil proceedings.
- Third-party claimants (e.g., exchanges, custodians, innocent owners) — rights to notice and to contest seizures.
- State funds and victims — possible changes to distribution of forfeiture proceeds (e.g., Criminal Injuries Compensation Fund).
Potential Impacts and Considerations
- Legal clarity: Adapting forfeiture law to digital assets reduces uncertainty around how to seize, store, and dispose of cryptocurrencies.
- Operational: Agencies will need technical capacity to secure and manage private keys, wallets, and exchanges’ custody processes.
- Rights protections: Implementation details will determine protections for innocent owners and procedural fairness.
- Fiscal: If proceeds are allocated to specific funds (as suggested), this could affect state revenue flows; the Office of Fiscal Analysis was referred on March 20, 2025.
Next Steps / Where to Find the Enacted Text
- Consult the official enrolled bill or the General Assembly’s website (session laws) to read the final enacted language and any amendments (House Amend. Sch. A).
- Review any implementing guidance or agency regulations for procedures on custody and valuation of virtual currency.
If you would like, I can retrieve the final enrolled bill text and produce a clause-by-clause summary or extract specific statutory changes and exact allocation language for forfeiture proceeds.
