Lawsuit claims 3.8M dormant BTC using police lost-and-found rules as Congress races to stop it with CLARITY

Section 20216 of the latest CLARITY draft states that a self-custodied digital asset cannot become abandoned, unclaimed, or forfeited. It also cannot become subject to adverse possession or finder's title solely because its owner has not moved it or otherwise shown continued interest.The language overrides state and local laws that treat years of wallet inactivity alone as grounds for transferring ownership to someone else.The May 8 and May 20 Senate drafts protected only the ability to hold a self-hosted wallet, and the July 22 version adds scope beyond that, extending into property law and covering whether a person still owns the coins inside that wallet once years of silence go by.The section defines a self-custodied digital asset as one where the owner keeps exclusive control of the private keys without relying on a custodian, exchange or intermediary.That definition draws the line the rest of the provision depends on.Draft / provisionWhat it protectsWhat it does not fully settleMay 8 / May 20 Senate draftsThe ability to use a self-hosted wallet and hold private keysWhether dormant self-custodied coins can be treated as abandoned propertyJuly 22 Section 20216Continued ownership...