California lawmakers have unanimously approved a measure targeting inactive custodial crypto accounts. The policy could enable authorities to seize digital assets held in dormant accounts through custodial services. This development underscores a critical principle in the crypto space: the importance of maintaining direct control over your private keys. Users storing assets with third-party custodians face regulatory risks that self-custodied wallets may avoid. The vote signals growing state-level interest in regulating digital asset holdings, making it essential for investors to understand the distinction between custodial and non-custodial solutions when managing their cryptocurrency portfolios.