Legislative Alert – Louisiana House Bill 1256 Enacted

Louisiana House Bill 1256 was enacted on June 9, 2026. The bill provides the criteria for the escheatment of digital asset accounts as follows:

Escheatment of Digital Asset Accounts

• Digital assets are presumed abandoned three years after the owner’s last indication of interest. However, if a first-class mailing from the holder to the owner is returned as undeliverable, the account is presumed abandoned three years after the mail is returned.

• Due diligence letters regarding digital assets must inform the owner that the property may be liquidated.

• The administrator may direct the holder to liquidate the digital asset prior to reporting. If the digital asset cannot be liquidated or the holder is unable to liquidate, they must provide written notice to the administrator stating the reasons why. The administrator must then provide alternative directions for the holder regarding the asset.

• If the holder has full control of all necessary private keys, the holder must report and deliver the digital asset in its native form to the states qualified custodian within 30 days of filing the annual report.

• The holder shall provide the administrator with proof of delivery upon request.

• No later than 30 days after reporting, the holder must provide the administrator with a reconciliation of the delivered digital asset.

• The administrator may direct the holder to liquidate the digital asset and remit the proceeds if the administrator determines that a reported digital asset cannot be accepted.

• If the holder possesses only a partial private key to the digital asset or is otherwise unable to transfer the digital asset to the qualified custodian, the holder must report and then maintain the digital asset until the additional keys required to transfer the digital asset become available or the holder is otherwise able to transfer the digital asset. The holder must determine at least annually if the digital asset is able to be transferred.

• The delivery of a digital asset or its liquidated value is considered payment or delivery.

• Digital assets listed on an established exchange cannot be sold or liquidated for less than the price on the exchange at the time of sale. Digital assets not listed on an established exchange may be sold by any commercially reasonable method.

• Holders, the administrator, and the designated custodian cannot be held liable for any loss or gain that would have been obtained if the digital asset had not been transferred, liquidated, or sold.

Definitions – New definitions are added as follows:

• A “Digital Asset” is a virtual currency, cryptocurrency, natively electronic asset, or other digital only asset that gives economic benefits, ownership interests, or access rights. This does not include securities, game-related digital content, gift cards, or loyalty cards.

• “Digital Asset Accounts” are accounts or wallets that are maintained by an owner with a holder that contain one or more types of digital assets or other property.

•  A “Private Key” is a unique piece of cryptographic data that is used for signing transactions on blockchain.

• A “Designated Custodian” is a banking or business association that works on behalf of the administrator to receive and maintain securities or digital assets from holders pending transfer or liquidation.

Administrator and Custodian Duties

• The administrator cannot liquidate the digital asset unless directed by the owner, the asset is unable to be maintained in custody, or the cost of custody and maintenance exceeds the value of the asset.

• The administrator may not sell or liquidate the digital asset for three years after they receive it.

• Owners may request the administrator sell or liquidate the digital asset and remit the proceeds to the owner upon approval of the claim.

• Administrative orders to liquidate must be based on at least one of the following: administrator ability to manage the digital asset, the ability of the filing format to support digital assets in their native form, the administrator’s database management system’s ability to support the asset, or the cost of custody exceeding the value of the digital asset.

• Any order from the administrator to liquidate or sell a digital asset must include a summary of the factors that lead to the decision. The administrator cannot order the holder to deliver the liquidated value of the digital asset solely based on the lack of a designated custodian.

This law will go into effect January 1, 2027.