Cryptocurrencies have become increasingly popular among investors over the past years as more and more of them become convinced of the ability of digital assets to provide revenue. Apart from being unhampered by censorship and remaining decentralized and therefore not subjected to any external authority, cryptocurrencies are also highly prized due to the technology that fuels them. The blockchain has many potential use cases across businesses and industries, potentially making it one of the most lucrative tech solutions of the following decades.

Bitcoin remains the favorite cryptocurrency of investors due to its reliability compared to altcoins, as well as its ability to bring revenue much faster. Since there’s a finite amount of BTC that will ever be mined, its scarcity also contributes to its value. And if there’s still any question as to whether or not Bitcoin reigns supreme within the market, it’s important to mention that it has been one of the most popular asset classes overall since the beginning of 2023 and is alone responsible for the trading volume of several cumulated altcoins. As of April, it was up 72% compared to 2022, a significant break from the longstanding crypto winter.

When you consider all these aspects, you might be thinking about starting an investment portfolio yourself. Here are the US states with the best financial climate for that.

Iowa

Starting from the latter half of the 20th century, Iowa has transitioned from a largely agriculture-based economy to one that prioritizes financial services, information technology and sustainable energy. Only wind turbines produce nearly 60% of the power the state requires, while solar power has steadily gained momentum over the past few years. This is important in the case of crypto mining farms, which will soon have to make a complete switch to green energy. Mining is notorious for the large amount of energy it consumes to create new coins, and many climate activists have expressed their concern that the process is bad for the environment by default.

In March 2021, state lawmakers passed legislation permitting the use of blockchain in providing transaction records. The laws are meant to recognize electronic records and signatures used within distributed ledgers officially. The definition of the term “contract” was expanded to include digital ones so that crypto protocols cannot be denied simply because they are fully digital.

California

It should come as no surprise that California is part of the list. As the home of Silicon Valley, one of the most widely recognized centers for innovation and high technology, California will naturally be at the forefront of adopting technological innovations. However, according to a 2022 study conducted by a financial technology company, The Golden State doesn’t rank first among crypto enthusiasts.

Yet, it is among the top seven.

California has been at the center of an executive order back in May 2022 which aimed to create more transparent regulations for the crypto ecosystem and help it remain compliant with the policies and regulations the federal government was set to launch in 2023. In the context of the changes, crypto users can expect that the digital asset environment will prioritize consumer safety and ensure the technology is used to benefit the general public.

In this sense, California is officially the first American state that took measures to support sustainable development for the crypto environment.

Nevada

According to several polls, Nevada is consistently ranked as the most crypto-friendly US state. Blockchain and smart contracts were originally recognized in the Silver State as early as 2017, with the state being one of the earliest adopters in the USA. There are several Bitcoin ATMs in Las Vegas, as well as a few businesses that accept crypto payments. Some hotel casinos also accept crypto payments, having adopted digital assets after noticing the general public continues to become interested in them.

In 2021, Resorts Wall Las Vegas, the well-known mall, resort and casino located on the Strip, joined forces with a crypto custodian business, making digital assets a part of the integrated resort experience.

Wyoming

When it comes to legislation, Wyoming is one of the best spots in the United States. It is the first to allow banks to house digital assets in the same manner as they do fiat currencies. There are over twenty state laws pertaining strictly to cryptocurrencies, which make it easier for crypto businesses and startups to operate in Wyoming. As of 2023, the state is still looking to attract new crypto companies, convinced that it is the best method to stave off the effects of the current financial crisis.

Some legislators believe that a diversified economy is the only way to avoid the effects of a recession, or at least minimize their impact, similar to how investors look to own various holdings to ensure financial resilience. The current US senator from Wyoming, Cynthia Lummis, who was previously elected to the executive position of treasurer in 1998, then re-elected in 2002, considers the state to be an example of responsible crypto policies.

Her enthusiasm for digital assets has led to her being referred to as the “Crypto Queen” in Congress. She is the first senator to own crypto, having purchased Bitcoin as early as 2013. In 2023, she introduced a bill set to regulate digital money like any other financial asset.

Texas

What sets Texas aside from the other states on the list is that it is widely recognized as a global hub for mining. The state is committed to blockchain development and boosting the digital finance sector. In May 2023, legislators voted to add Bitcoin to the state’s Bill of Rights. This would allow users to use crypto for other trading ventures and transactions. There are also several incentives for miners operating in Texas, including tax credits. However, activists have expressed their concerns about whether the energy grid can withstand the energy demands of the process.

A lot of computational power is necessary to create digital money, meaning that a lot of energy goes into the procedure. Texas passed several bills in 2022 to improve the regulatory framework for cryptocurrencies, including some aimed at acknowledging their legal status. This is one of the first steps in enabling banks to become custodians.

The United States is one of the most crypto-friendly countries in the world. Yet even here, some states are more open to accepting digital finance developments than others.