A HODLer’s haven: Crypto-friendly states in 2026
Dec 18, 2025・7 min read
The United States government has never been more enthusiastic about crypto. With the approval of a strategic Bitcoin (BTC) reserve and products like spot Bitcoin ETFs, federal crypto policies are becoming clearer – and more positive.
Just because Washington, D.C. is moving toward digital assets doesn’t mean every state is following suit. Some local municipalities are actively courting crypto innovators with favorable infrastructure or tax breaks, but others remain resistant to the shifting landscape.
Whether Americans trade tokens or engage in industries like crypto mining or blockchain development, it’s important to know how their home state treats digital assets. Living in a crypto-friendly state can take significant stress off a crypto holder’s (or HODLer’s) shoulders.
What makes a state crypto-friendly?
To qualify as a crypto-friendly state, local cryptocurrency laws need to be clear and competitive. It’s not enough for a state to issue precise crypto-related laws if there are excessive restrictions on investors, traders, or companies. The best crypto-friendly states aim to make its tax and regulatory policies both easy to understand and attractive for people involved in the crypto sector. If a state's policies and infrastructure promote the growth of digital assets, including things like low taxes and plenty of energy for mining, there’s a good chance it’s a positive place for crypto users and developers.
6 most crypto-friendly states in 2026
Surprisingly, states closely associated with finance and technology (like New York and California) aren’t known for their pro-crypto stances. Instead, municipalities in the Midwest and South have emerged as crypto hubs, sometimes attracting major centralized exchange (CEX) headquarters. These states tend to have lower-than-average income taxes and, with smaller populations than the coastal cities, more physical space and energy for data centers and mining operations.
Here are six of the most crypto-friendly states to explore.
Wyoming
Wyoming has been working hard to become the U.S.’s Web3 hub, with clear definitions for digital assets and relaxed policies. In 2019, state legislators legally defined digital assets as property in Senate bill SF0125, allowing state-chartered banks to custody crypto through special purpose depository institutions (SPDIs). More advantages for crypto enthusiasts in Wyoming include zero state income and capital gains tax, a legal framework for decentralized autonomous organizations (DAOs), and consumer protections for digital assets if their exchange goes bankrupt.
These favorable policies attracted the CEX Kraken to Wyoming. Kraken opened its SPDI, Kraken Financial, in the state and moved its headquarters to Cheyenne in 2025. The same year, Wyoming took crypto adoption even further when it introduced its state-sponsored stablecoin, Frontier Stable Token (FRNT).
Texas
State legislators formally welcomed crypto into the Lone Star State with the passage of the Texas Virtual Currency Act (HB 4474) in 2021. In the years since, Texas has become closely associated with the Bitcoin mining industry. Professional Bitcoin mining firms like Riot Platforms and Core Scientific built massive facilities in the state to take advantage of its abundant energy sources and lack of a state income tax. Texas is also investing in the future of crypto with a strategic bitcoin reserve.
To take advantage of these policies, the U.S.’s largest CEX, Coinbase, announced in late 2025 that it would move its incorporation from Delaware to Texas.
Florida
Like Texas and Wyoming, Florida is a crypto tax-friendly state with zero state income or capital gains taxes, so crypto traders only have to worry about paying federal taxes. Beyond the Sunshine State’s tax policies, Florida clarified its stance on the definition of virtual currencies in 2022 and eliminated the requirement for individuals to file as a money service business when they make non-intermediary crypto transactions.
Miami became particularly famous in the crypto world thanks to Mayor Francis Suarez’s loud support. The city remains the home to Yuga Labs, one of the most iconic non-fungible token (NFT) companies, with projects like the Bored Ape Yacht Club.
Arizona
Arizona is one of two states on this list with a state income tax, but it’s enacted several tax policies that make the state more favorable to crypto investors. For example, Arizona residents aren’t taxed on crypto airdrops and can deduct blockchain network fees (aka gas fees) from their gross income. To make the state more attractive to miners, Arizona signed HB 2342 into law in 2025. This bill removes restrictions on the use of computational power to mine proof-of-work (PoW) cryptocurrencies like Bitcoin and Dogecoin (DOGE).
Nevada
The foundation for Nevada’s crypto-friendly status comes from its lack of state income and capital gains taxes, as well as its clear definition of virtual currency as “intangible personal property” in 2019’s SB 164. With these policies, crypto investors in Nevada match those in Florida who only have to file federal taxes.
Along with this low-risk tax environment, Nevada encourages innovation in crypto technology through its Regulatory Experimentation Program for Product Innovation (SB 161), which allows certain fintech companies to test new products with a controlled group of consumers.
Tennessee
Tennessee shines as another tax haven for crypto traders and investors, with zero state taxes on personal income and capital gains. To make the state even more attractive to crypto innovators, lawmakers passed SB 2854 in 2022, which created a new LLC category specifically for DAOs. Tennessee also opened its doors to crypto miners with HB 2309 in 2024, which legalizes home mining and lets businesses set up mining facilities in “any area that is zoned for industrial use.”
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Best crypto mining-friendly states
As long as states have pro-crypto policies and abundant energy sources, they have the potential to be a mining powerhouse. However, the states that typically offer the best returns for mining firms are those with a mix of favorable tax policies and reliably cold temperatures. Since mining equipment produces a lot of heat, states that are naturally cold for most of the year (like Wyoming and North Dakota) are more likely to keep cooling costs low.
Texas isn’t a cold state, but it’s become one of the nation’s hubs for mining activity thanks to its lack of state income tax, abundant and deregulated energy market, and clear compliance policies for mining operations. Other states have introduced legislation to compete with Texas’s dominance in crypto mining. Kentucky now offers tax exemptions for commercial mining operations, and Oklahoma incentivizes crypto miners with favorable tax policies and protections against higher-than-average electricity rates.
Georgia had the most abundant Bitcoin mines in 2021 because of the state’s low energy costs, but noise pollution from crypto mines led to public backlash, so it’s no longer one of the best options for crypto enterprises.
Best states for crypto businesses
Along with clear definitions of digital assets, states that succeed with crypto businesses typically offer a mix of attractive features like low taxes, a large talent pool, and easy access to state funding or venture capital.
Although Wyoming doesn ’t have major tech hubs like San Francisco, it has become one of the more attractive spots for crypto businesses like Kraken. Some of Wyoming’s most pertinent crypto offerings include DAO licensing, no state taxes, and reliable access to banking services through SPDI. Tennessee took a cue from Wyoming’s policies by introducing a DAO licensing law on top of its zero personal income tax for businesses. Both Texas and Florida also attract crypto talent thanks to their generous tax treatments, but Texas tends to focus its efforts on empowering crypto mining, while Florida welcomes more creative projects like Yuga Labs.
One exception to these general low-tax, high-independence rules is California. Compared with other crypto-friendly states, California has higher taxes and more regulations that businesses have to follow. Despite these additional restrictions, it’s still common to find crypto companies in the Golden State thanks to its status as a global tech hub and consequent access to venture capital firms.
How to decide which state is best for you
How someone intends to engage with crypto will shape what they look for in a state’s crypto regulations. Although several states offer an overall favorable environment for crypto assets in general, choosing the ideal home base depends on your strategy or business interests.
For example, individual investors should focus on factors that have the most direct impact on how much profit people can expect to keep each year from their digital assets. These include:
- Capital gains
- Income taxes
- Overall cost of living in the state
Crypto startups and Web3 entrepreneurs need to focus on:
- Access to talent
- A favorable regulatory climate
- Investor capital or public “sandbox” programs for crypto services
Those in the crypto mining business, however, should look into:
- Availability and affordability of various energy sources
- Average climate (focusing on colder states)
- Zoning and permit requirements
- Infrastructure like grid reliability and transmission capacity
Keep your crypto tax-compliant with CoinTracker
Wherever crypto investors live, the IRS considers digital assets either property or income. Anyone who trades or earns crypto throughout the year needs detailed records of their transactions to remain compliant with the IRS come tax season. CoinTracker makes this process easier by linking to your exchange APIs and public wallet addresses to provide a comprehensive Portfolio Tracker noting your cost basis and yearly activity. With a CoinTracker account, you can also import these details directly into IRS forms and send them to a CPA or tax solutions like TurboTax or H&R Block.
Want a clear view of your assets at all times? With CoinTracker, link your wallets and exchanges to monitor your portfolio’s performance in real time. Create a free account and see why crypto investors trust us.
Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.
FAQ
Which states are considered the most crypto-friendly today?
Although crypto laws are constantly changing, states with some of the most positive reputations and relationships with the crypto industry in 2026 include Wyoming, Texas, and Florida.
What states are best for crypto investors?
Crypto investors tend to favor states that clearly recognize digital assets and have less restrictive tax policies, including Wyoming, Florida, and Tennessee.
Which states support crypto mining operations?
States with pro-crypto legal policies and abundant energy sources are the most favorable for crypto mining companies. States like Texas, Oklahoma, and Wyoming currently have a strong positive reputation for supporting Bitcoin miners.
What makes a state more or less crypto-friendly?
A state’s crypto-friendliness depends on the state’s approach to regulating digital assets. States with clearer policies, lower taxes, and active encouragement from lawmakers will be more likely to attract investors and businesses involved in digital assets, whereas states with more restrictive or opaque policies and reserved approaches won’t.