WASHINGTON, D.C. — Congressional lawmakers introduced the SAFER Act, a bill that would restrict when states can take custody of securities, digital assets, and investment accounts under unclaimed property laws. The legislation would override state unclaimed property statutes by preventing financial institutions from turning over such assets to states unless federal conditions are met.

Under the proposal, states would be prohibited from taking custody of securities, digital assets, or investment accounts unless the owner is confirmed deceased or, for retirement-age accounts, only after repeated death checks and extended periods with no contact from the owner or fiduciary. Current unclaimed property laws allow states to take custody of financial accounts after a set period of inactivity, sometimes as short as three years, even if the owner is alive and unaware their assets may be transferred.

"This is absurd. The reason people invest in long-term retirement is because they expect these assets to appreciate over time — and they should get the benefit of that appreciation," Rep. Sam Liccardo said. Rep. Mike Lawler said states lack motivation to alert account holders. "There's no incentive for them to actually notify the individual," he said.

"They just collect the interest in the hope that the person never notices," Lawler said.

The National Association of Unclaimed Property Administrators offered a contrasting view. "State unclaimed property programs are consumer protection programs," the organization said. "Without unclaimed property programs, lost or forgotten assets would often remain indefinitely with private companies and never be returned to the rightful owner," it added.

Separately, Sen. Elizabeth Warren called for a nationwide review of state unclaimed property systems. In a letter to the National Association of Unclaimed Property Administrators, Warren requested detailed, state-by-state data on the operation and changes of those systems, including how states define and trigger abandoned property, the length of dormancy periods, amounts collected versus returned, use of outside auditors, and their compensation. She also asked how states locate owners and whether policy changes are increasing the amount of property being escheated. Warren requested responses by May 1, 2026.

Warren raised concern that many states have shifted from a standard where dormancy begins only when mail is undeliverable to a broader inactivity standard that allows asset seizure even if account statements are still being delivered.

U.S. states collectively hold tens of billions of dollars in unclaimed property and may use those funds for general operations or specific state projects. In 2024, states returned $4.49 billion to owners, compared with an estimated $70 billion in unclaimed property nationwide. In January, the California State Controller's Office began mailing notices to individuals with between $500 and $5,000 in unclaimed property. Officials said nearly 100,000 letters were sent, and more than $25 million was returned to over 22,000 Californians.