CaliforniaCalifornia law covers crime-linked digital asset transactions and seizures
California signed a law covering certain large digital asset transactions tied to crime and allowing courts to approve seizures that may help repay victims.
What it does
People could face money laundering charges for certain large digital asset transactions if they intend to promote crime or know the assets came from crime.
With court approval, officers could seize digital assets tied to certain crimes. A prosecutor may seek forfeiture, but known owners get notice and a chance to claim the assets.
Forfeited digital assets would go toward victims’ actual losses. Any assets left after up to three years in government custody would fund victim services.
Argument forFraud victims could recover some of their losses from seized assets, even when the people behind the fraud cannot be convicted.
Argument againstPeople may lose access to digital assets during a seizure and face a 30-day deadline plus evidence requirements to prove a valid ownership claim.
More detail
A person may be convicted of money laundering for certain transactions using digital assets. This applies to transactions over $5,000 in seven days or over $25,000 in 30 days, using digital assets or through one or more financial institutions. The person must act with specific intent to promote criminal activity or know the assets came from criminal activity. This expanded rule lasts until January 1, 2032.
A law enforcement officer or prosecutor may seek a warrant to seize digital assets tied to specified crimes. The warrant may cover digital assets, wallets, accounts, or similar things holding digital assets. It may reach assets tied to victims or crimes elsewhere if a California crime gives the court jurisdiction. A court must find probable cause that the assets contain crime proceeds, are traceable to crime, or were used to help commit crime. A warrant must identify where and how assets will be seized and how much may be taken. A prosecutor may start a forfeiture case within 180 days. Known potential owners and people with a known security interest must receive notice; a claimant has 30 days after service to file a verified claim with supporting evidence. A prosecutor must start a forfeiture case within 180 days of seizure unless a court extends the deadline for good cause. If no case starts and return is not barred by law, the assets must be returned.
A prosecutor must distribute forfeited assets to eligible victims; any amount left over goes to the Restitution Fund for victim services. This applies to digital assets forfeited through the new seizure process. Victims of the crimes or fraud schemes tied to the case share assets in proportion to their actual losses. A prosecutor may include additional victims if a claims process is practical and not unduly burdensome. Assets not distributed to victims must be kept by law enforcement or the prosecutor for no more than three years, then deposited in the Restitution Fund for victim services. The agency must distribute assets to victims as soon as practical unless proceedings are stayed; any undistributed assets go to the Restitution Fund after no more than three years.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 27Chaptered by Secretary of State. Chapter 483, Statutes of 2026.Latest
- Sep 27Approved by the Governor Gavin Newsom.Became Law
- Sep 4Enrolled and presented to the Governor at 2 p.m.To Governor
- Aug 28Assembly amendments concurred in. (Ayes 39. Noes 0.) Ordered to engrossing and enrolling.Major
- Vote recorded Special Consent. Result: pass.Upper
- Aug 27Ordered to special consent calendar.
- Aug 25In Senate. Concurrence in Assembly amendments pending.
- Vote recorded SB 1208 Grayson Senate Third Reading By Stefani. Result: pass.Lower
- Aug 25Read third time. Passed. (Ayes 75. Noes 0. Page 6474.) Ordered to the Senate.Passed Assembly
- Aug 20Ordered to third reading.Minor
- Aug 20Read third time and amended.Major
- Aug 17Read second time. Ordered to third reading.Minor
- Aug 13Read second time and amended. Ordered to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Lower
- Aug 13From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 13).Major
- Aug 13Assembly Rule 63 suspended.
- Aug 5August 5 set for first hearing. Placed on suspense file.
- Jul 2Read second time and amended. Re-referred to Com. on APPR.Major
- Jul 1From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (June 30).Major
- Jun 30
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Jun 23June 23 set for second hearing canceled at the request of author.
- Jun 9June 9 set for first hearing canceled at the request of author.
- May 26Referred to Com. on PUB. S.Minor
- May 20In Assembly. Read first time. Held at Desk.Minor
- May 19Read third time. Passed. (Ayes 39. Noes 0. Page 4362.) Ordered to the Assembly.Passed Senate
- Vote recorded 3rd Reading. Result: pass.Upper
- May 18Read second time. Ordered to third reading.Minor
- May 14Read second time and amended. Ordered to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Upper
- May 14From committee: Do pass as amended. (Ayes 7. Noes 0. Page 4269.) (May 14).Major
- May 8Set for hearing May 14.
- May 4May 4 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- Apr 24Set for hearing May 4.
- Apr 22From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0. Page 3983.) (April 21). Re-referred to Com. on APPR.Minor
- Apr 21
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Apr 8Set for hearing April 21.
- Apr 7April 14 set for second hearing canceled at the request of author.
- Apr 6From committee with author's amendments. Read second time and amended. Re-referred to Com. on PUB. S.Major
- Mar 27Set for hearing April 14.
- Mar 26April 7 set for first hearing canceled at the request of author.
- Mar 23Set for hearing April 7.
- Mar 4Referred to Com. on PUB. S.Minor
- Feb 20From printer. May be acted upon on or after March 22.
- Feb 19Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced
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