Key Changes and Highlights

Addition of Digital Assets to Unclaimed Property Law

  • The bill introduces new definitions for “digital asset” and “private key.”
  • Digital assets are defined broadly as any digital representation used as a medium of exchange or storage of value which is not fiat currency and is recorded in a cryptographically secured, distributed ledger, or any similar technology. It explicitly excludes software or protocols governing the transfer, video‑game content, and loyalty or gift cards.
  • Private key is defined as a unique element of cryptographic data known only by the owner and used for singing transactions on a cryptographically secured, distributed ledger.

Presumption of Abandonment for Digital Asset Accounts

  • A new abandonment category is created for digital asset accounts, presumed abandoned three years after the last owner activity, provided the owner’s last known address is in Alabama.
  • The bill clarifies what constitutes “activity” (e.g., account access, transactions, responses to outreach) and excludes automated or recurring transactions from qualifying as owner activity.

Expanded Due Diligence Requirement

  • If the property is a security, a digital asset of the contents of a safe deposit box, due diligence notices must now inform owners that the property may be liquidated if the owner does not respond timely.

Authority to Accept, Decline, or Liquidate Digital Assets

  • The State Treasurer is authorized to:
    • Accept custody of digital assets which may be sold upon receipt.
    • Decline digital assets that are not freely transferable, are of nominal value, or where liquidation costs exceed value.
    • Exempt classes or types of digital assets from reporting or liquidation.
  • If a holder possesses the private key or credentials, the holder must transfer the digital asset (in native form) to the Treasurer within 30 days of reporting.
  • If the holder lacks sufficient information to transfer the asset, the holder must maintain custody until transfer is possible.
  • The Treasurer may direct holders to liquidate digital assets, generally within 30 days of filing the report.

Clarification of Owner Claim Rights After Liquidation

  • Claimants are entitled to either:
    • The property itself (if still held by the Treasurer), or
    • The net proceeds from sale.
  • Owners have no claim for appreciation or depreciation in value of the property occurring after its liquidation.

Clarification and Tightening of Finder Agreement Requirements

  • The bill defines a finder as any person engaged or assisting in the location, recovery, purchase, or assignment of property held by the State Treasurer for a fee, compensation, or commission paid by the owner of the property.
  • The bill revises and clarifies the statutory requirements for enforceable agreements between owners (or apparent owners) and finders, including:
    • Clear disclosure that the property is held by the Alabama State Treasurer and provide contact information for recovering the property.
    • State that the property may be recovered directly from the state without a fee.
  • Total finder compensation remains capped at 10 percent of the amount recovered.
  • A full, unredacted copy of the agreement must be submitted to the State Treasurer with any claim.

Adds Definition of Last Known Address

  • Last known address is defined as any address, description, or other indication of the location of the apparent owner.
  • At a minimum it must identify the state the apparent owner was located in.
  • Does not need to be sufficient for the delivery of first class mail.

The changes are effective June 1, 2026.