Tracking Bitcoin Bills: A State-by-State Breakdown of U.S. Crypto Legislation

As Washington drags its feet, the states are leading America’s Bitcoin policy shift

April 2025

While Congress debates the future of digital asset regulation at the federal level, individual U.S. states are quietly — and in some cases, aggressively — shaping the legal framework for Bitcoin and blockchain technologies within their own borders.

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From pro-mining initiatives in Texas to right-to-custody protections in Wyoming, a patchwork of crypto legislation is emerging across America, defining everything from how individuals hold Bitcoin to how businesses report transactions.

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This divergence raises a key question: Is the future of crypto in the United States being built bottom-up rather than top-down?

📝 State Highlights: A 2025 Legislative Snapshot

🟢 Texas: Full-Throttle on Mining and Payments

• Texas continues to lead with pro-mining incentives, including energy rebates for Bitcoin miners who participate in grid balancing.
• Lawmakers reaffirmed the right to transact in Bitcoin and proposed a bill recognizing BTC as legal tender for intra-state commerce.

“Bitcoin is freedom tech — and in Texas, freedom is non-negotiable,” said State Rep. Cody Harris (R-TX).

🟢 Wyoming: The Custody Capital

• Wyoming’s Special Purpose Depository Institutions (SPDIs) remain the most bank-friendly route for Bitcoin custody in the U.S.
• 2025 updates now include smart contract enforceability, DAO legal status expansion, and tax neutrality for digital asset transfers.

🟠 Florida: Embracing Bitcoin, Eyeing Stablecoins

• Florida’s new bill reclassifies Bitcoin as digital personal property — providing greater protection from seizure or asset forfeiture.
• Governor DeSantis has also pushed back against CBDC adoption, aligning with the state’s anti-surveillance posture.

🟡 California: Innovation With Guardrails

• Legislation passed in early 2025 enables blockchain-based voting pilots in three counties, while maintaining stringent licensing for exchanges.
• Consumer privacy groups are pushing back on centralized wallet requirements — suggesting friction between Sacramento and Silicon Valley.

🔴 New York: Stricter By Design

• The BitLicense framework remains in place, though a 2025 amendment added broader definitions for crypto staking and NFT marketplaces.
• Mining operations continue to face pressure under statewide environmental oversight, with new carbon reporting mandates.

🟢 Midwest Momentum: Crypto Quietly Gains Ground in the Heartland

Despite being traditionally overlooked in national crypto conversations, several Midwestern states are advancing meaningful legislation that could reshape the regulatory landscape from the center outward.

🟠 Illinois: Regulating for Scale

• Illinois passed the Blockchain Business Development Act, creating a regulatory sandbox for Web3 startups and DeFi protocols.
• Chicago is now home to several crypto VC firms and pilot programs for blockchain land registries and digital identity.

🟡 Ohio: From Early BTC Tax Payments to Web3 Workforce

• Ohio was the first state to accept Bitcoin for tax payments (2018) and is now funding blockchain research centers at public universities.
• A new 2025 bill proposes blockchain-backed municipal bonds, aimed at attracting DeFi-driven infrastructure funding.

🟢 Missouri & Nebraska: Right to Self-Custody Champions

• Both states introduced bills in 2024–2025 that protect an individual’s right to self-custody digital assets, a move in line with 2nd Amendment-style sovereignty narratives.
• Missouri’s bill also protects Bitcoin miners from discriminatory zoning laws.

🟠 Iowa & Indiana: Watching, But Warming

• While not yet leaders, these states have introduced exploratory committees to assess blockchain’s use in supply chains and agriculture.
• Local lawmakers cite interest in “Bitcoin as a hedge” and tokenization of crop yields as potential economic innovations.

🟡 Kansas: Cautious Optimism with a Libertarian Edge

• In 2024, House Bill 2464 was introduced to define “virtual currencies” as property, aligning the state with broader IRS interpretations but clarifying local tax applicability.
• Lawmakers have held joint hearings on self-custody rights, sparked by increasing constituent interest in Bitcoin, particularly from farming communities exploring crypto as a hedge against inflation.
• The Kansas Office of the State Bank Commissioner issued updated guidance for crypto custodians, placing emphasis on transparency, audit trails, and reserves.
• Pilot programs out of Kansas State University are exploring blockchain for grain tracking and crop insurance claims.

“We’re not rushing regulation, but we’re not ignoring the innovation either,” said State Sen. J.R. Claiborne (R-KS), who co-authored a 2025 resolution to create a Digital Assets Working Group.

⚖️ Key Themes Emerging Nationwide

1. Right to Self-Custody Laws

A growing number of states — including Tennessee, Missouri, and Arkansas — are pushing bills that guarantee the right to hold digital assets directly, without reliance on custodians or third-party services.

2. CBDC Resistance

States like South Dakota and Oklahoma have passed bills explicitly rejecting the implementation of central bank digital currencies, citing surveillance and monetary control concerns.

3. Education and Blockchain Workforce Development

Colorado and North Carolina are integrating blockchain courses into statewide STEM curricula and funding local crypto accelerators, signaling a long-term view on industry viability.

🗽️ What This Means for Crypto in America

While the federal government continues to weigh comprehensive legislation, the state-level movement is setting precedence for how Bitcoin and broader crypto ecosystems may operate in the U.S.

“We’re witnessing a digital gold rush — but the legal terrain looks more like a checkerboard,” says Lara McConnell, policy analyst at the Crypto Policy Institute.

Businesses operating across state lines will need to carefully navigate this legal mosaic, particularly as conflicting definitions of digital assets could affect taxation, licensing, and enforcement.

🌐 Final Word: The U.S. Crypto Future May Be Federated

As Bitcoin adoption grows and decentralized finance matures, the map of crypto-friendliness across America is coming into sharper focus. For now, states are writing the rulebook, while Washington watches — and waits.

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