⚖️ California Won’t Let Your Bitcoin Be Sold Off Anymore — Here’s Why That’s Huge

Forget the FUD. AB1052 isn’t a crypto seizure law — it’s the opposite. It’s California’s way of saying: “We get it. Bitcoin is different.”

Thanks to one guy — Eric Peterson — the Web3 world is finally starting to understand what this law really does: protect your coins from being sold behind your back.

🧠 The Problem Before AB1052: You Lost Access = They Sold Your BTC

Let’s say you bought 0.444 BTC in 2015 for 100 and forgot about it. By 2018, your exchange marked your account as “abandoned.” So what happened under old law?

• The exchange sold your Bitcoin at 2018 prices (3,500/BTC)
• You got 1,554 held in cash by the state
• Fast-forward to 2025: That same 0.444 BTC would be worth 46,000+
• But you only get 1.5K back. Brutal.

🛡️ AB1052 Fixes That. Here’s How:

Thanks to Eric Peterson, the new bill keeps your Bitcoin as Bitcoin.

• 🔐 No liquidation
• 🪙 The state takes custody of your actual crypto, not dollars
• 🏛️ Held by a licensed custodian — not the exchange
• 🧾 You claim your full Bitcoin balance, not a discounted fiat version

Peterson put it simply: "You don’t lose your upside anymore."

🚫 What AB1052 Doesn’t Do

Don’t panic — this isn’t a wallet grab. Here’s what the bill doesn’t touch:

• ❌ Your self-custodied wallets (you hold the keys? You’re safe)
• ❌ Your active exchange accounts
• ❌ Any crypto with activity in the last 3 years

It only applies when:

• There’s been zero activity for 3+ years
• The exchange can’t reach you
• And the account is custodial, meaning you didn’t control the keys

🔍 Why This Actually Protects Crypto Holders

AB1052 treats crypto like any other asset — but smarter. It’s a big win because:

• 🏦 Your Bitcoin is preserved in its native form
• 📈 You don’t miss out on long-term price gains
• ⚖️ You get consumer protection without sacrificing decentralization
• 🧭 It sets a precedent: regulation can evolve without killing the tech

Eric Peterson isn’t just a policy wonk — he’s a translator between lawmakers and degens. And his campaign around AB1052 helped stop the misinformation before it spread too far.

🗽 The Bigger Picture: State Law Meets Sovereign Money

This law is proof that Bitcoin can coexist with regulation — when regulators understand the tech.

By locking in protections for dormant accounts, California is modernizing old-school finance laws for a crypto-native world.

• No, this doesn’t make Bitcoin “centralized.”
• No, this isn’t surveillance or asset seizure.
• It’s asset preservation — and you’ll thank it later if you ever lose your login.

🧠 TL;DR

• 🪙 AB1052 prevents exchanges from selling your unclaimed Bitcoin
• 🔐 It applies only to custodial exchanges, not your cold wallet
• 🕒 Kicks in after 3 years of inactivity
• 💰 You reclaim your original BTC — not the fiat it was worth back then
• 🧭 California is setting a crypto-friendly legal precedent — with real consumer protection baked in