When you review the United States' stance on cryptocurrencies, it can be a bit confusing. Some states are all about the blockchain revolution, while others find the technology a risk to their control. Knowing the difference between the two types of states can help you to better decide where to place your funding in the future. Here are the top 10 pro-crypto states you need to know.
Texas is one of the top pro-crypto states you need to know for many reasons. The ‘Lone Star State' earned the reputation of pro-crypto thanks to its low-cost electricity and access to multiple renewable energy streams. Already, Texas is one of the top mining states in the country.
The state has welcomed the growing mining community and is currently home to one of the largest mining data centers in the world. The Riot Blockchain mining center covers 256 acres and provides a massive amount of hashing power to Bitcoin's blockchain.
According to reports put forth by the Texas blockchain counsel, miners used 2,100 megawatts of energy this year. That amount of data consumption represents a 75% increase from last year's usage. Much of this growth can be attributed to a new regulatory structure put forth by local politicians such as Governor Greg Abbott.
Nebraska makes the list for a combination of its multiple data centers and its forays into the crypto banking sector. The state is a pioneer in the crypto banking sector and was among the first to put forth a charter enabling banks to operate in the blockchain space.
Additionally, Nebraska is home to some of the largest and most successful mining operations in North America. For example, the 100-megawatt Compute Northern Data Center has called Nebraska home since 2019. Today, the state remains a popular destination for miners seeking to run major operations.
Kentucky is another state that deserves recognition for its pro-crypto stance. The state has managed to carve out a profitable crypto market thanks to a combination of renewable energy and new tax breaks for miners.
Kentucky has long been home to a strong mining community. Even back in October 2021, Kentucky accounted for 18.7% of the United States' total Bitcoin hash rate. This high percentage remains true today as the state's governor, Andy Beshear, supports a crypto-friendly Kentucky.
Virginia makes the list due to its non-intrusive approach to cryptocurrencies. Like many regions in the world, Virginia doesn't want to limit the innovation of this technology by over-regulating the market into oblivion. It prefers to monitor and let the technology mature before making legislation that can maximize its capabilities.
This approach has been echoed by reports put out by the Bureau of Financial Institutions. The state is also one of only a few that have created a framework that enables traditional banks to hold clients' cryptocurrencies. This capability was made possible after Governor Glenn Youngkin signed new legislation last year.
Crypto miners have seen Idaho as an ideal location since the early days of crypto fever. The state has some distinct advantages, such as low-cost facilities, access to renewable energy, and the lowest electricity costs in the entire country. These features continue to make Idaho an ideal destination for large mining operations.
Local regulators recognized these advantages and have chosen to lean into them, having recently signed the Digital Assets Act. This legislation lays down the basic regulatory framework for the use and saving of digital assets. Notably, it differentiates cryptocurrencies from securities, which makes them more appealing to traditional investment firms wary of regulatory biteback.
Washington is ideally situated in a part of the nation that has low electricity and a high population of tech-savvy individuals. This combination makes the location ripe for miners seeking to enjoy the West Coast without paying California prices.
The Washington State Blockchain Work Group is a committee that was signed into law to help improve blockchain understanding and integration. The committee is responsible for finding partnerships between blockchain industry professionals and government offices. Notably, the group was created following legislation signed by Governor Jay Inslee.
Utah showed its crypto ambitions when it became one of the first states to accept digital assets as a form of payment for certain tasks. Local citizens can use their satoshis to cover their local and state taxes, which places Utah in an exclusive set of states to have made this step. Utah also introduced a new blockchain innovation task force as part of its strategy to expand adoption.
Another low-cost destination that has become a go-to spot for miners is North Dakota. The low cost of property, coupled with reduced electricity costs, helped the state to become a crypto powerhouse. Currently, the state is home to Bitzer Mining Company and features some of the most pro-crypto legislation in the US.
Oklahoma also provides low-cost living and facilities to miners. The state has introduced some pro-mining legislation geared at attracting significant firms to bring jobs and experience to the market. These attempts have succeeded with one of the most well-known firms, Northern Data, making Oklahoma its North American headquarters.
Like many of the other options on this list, Wyoming offers low-cost property and access to multiple forms of renewable energy. It's seen as a pioneering state in terms of legislation and has enacted numerous crypto laws designed to expand the blockchain industry's presence. Consequently, it's leading the pack in terms of crypto legislation, with much of these regulations having been endorsed by the state's pro-crypto senator, Cynthia Lummis.
The US is Turning Towards Cryptocurrencies
When you evaluate the states on this list, some common trends emerge. For one, the crypto revolution has found a home in rural America. The low costs and available land and resources have made blockchain mining as big a draw to these regions as the gold rush before it. For these reasons and many more, pro-crypto states will succeed.