Illinois Proposes Seizure of Crypto Left Unclaimed for 5 Years

Illinois Proposes Seizure of Crypto Left Unclaimed for 5 Years

Illinois lawmakers are pushing a bill that will allow the state government to seize crypto currencies left unclaimed after five years. The proposal would liquidate the “abandoned” crypto currencies, with the proceeds being sent to the State Treasurer.

Illinois House Bill 4573 is an amendment to the State’s Revised Uniform Unclaimed Property Act, introduced by Rep. Michael J. Zalewski.

“The bill provides that virtual currency is presumed abandoned if it is unclaimed by the apparent owner 5 years after the last indication of interest in the property.”

The State Treasurer would assume the administrative role, according to the bill.

“If property reported to the administrator is virtual currency, the holder shall liquidate the virtual currency and remit the proceeds to the administrator. The liquidation shall occur anytime within 30 days prior to the filing of the report under Section 15-401.”

The forced liquidation would apply to any “virtual currencies” defined as “any type of digital unit, including cryptocurrency.” It would be final and immutable to liquidate the assets.

The bill states,

“The owner shall not have recourse against the holder or the administrator to recover any gain in value that occurs after the liquidation of the virtual currency under this subsection.”

US Congressman Introduces “2020 Crypto-Currency Act”

In a related context, a congressman from the United States is the latest piece of work to clarify which US regulator is responsible for which digital assets.

Representative Paul Gosar (R-AZ) introduced the “2020 Crypto-Currency Act,” a bill that seeks to choreograph a wide range of digital assets to respond to the regulator in question.

As Will Stechschulte, Gosar’s legislative assistant explained, “the bill looks to provide not only clarity, but legitimacy to crypto assets in the United States.”

The proposal by Gosar splits digital assets into three categories: crypto-commodity, crypto-currency, and crypto-security. The Commodity Futures Trading Commission (CFTC), the Treasury Secretary via the Financial Crimes Enforcement Network (FinCEN), and the Securities and Exchange Commission (SEC) would regulate the three categories, respectively.

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