The office that oversees state finances and unclaimed property is considering how it will manage digital currency assets with a recently released request for information (RFI).
The Office of the State Controller issued the RFI Oct. 29, seeking “information regarding cryptocurrency custody platforms and related services for managing unclaimed crypto assets.”
The Controller’s Office has, to this point, managed more traditional unclaimed assets like bank accounts, stocks and mutual funds, among others, but the rise of cryptocurrency has created a new asset class that must be considered.
“These services will ultimately allow the state to achieve its goals of providing secure, compliant and scalable custody solutions for unclaimed cryptocurrency assets, Non-Fungible Tokens (NFTs) and other emerging digital assets,” the solicitation notes. “This Request for Information (RFI) aims to explore custody, reporting and asset transfer solutions to inform the state’s management of digital wallets, adhering to all applicable legal and regulatory frameworks.”
The sudden interest in this area stems from Senate Bill 822, which was signed by Gov. Gavin Newsom Oct. 11. That new law, among other things, clarified that cryptocurrency is a form of intangible assets and requires that the Controller’s Office “select one or more custodians for the management and safekeeping of digital financial assets that have escheated to the state.”
Cryptocurrency has exploded in popularity in recent years, with some estimates putting global valuations at more than $4 trillion.
State's Top Financial Office Eyes Crypto Management Advice
The California Office of the Controller is looking for information about technology that could be used to manage digital currencies that find their way into the state's unclaimed property holdings.
