California
Bitcoin States
California is home to the largest concentration of Bitcoin and cryptocurrency companies in the United States, including Coinbase, Kraken, and numerous Bitcoin startups in San Francisco and Silicon Valley. The state passed the Digital Financial Assets Law (DFAL) in 2023, requiring licenses for digital asset businesses. California has among the highest income tax rates in the US, creating tension for long-term Bitcoin holders.
Details
- State
- California
- Status
- no_legislation
- Notable
- Home to the most Bitcoin companies of any US state; mixed regulatory history; AB 39 digital asset licensing law took effect 2025
- Governor
- Gavin Newsom
- Known For
- Coinbase, Kraken HQ, Silicon Valley Bitcoin startups, DFAL licensing 2023, high income tax (13.3%)
- Income Tax
- Yes
- Bill Number
- AB 39 / SB 401
- Description
- California enacted AB 39 (Digital Financial Assets Law, 2023) establishing a licensing framework for crypto businesses but has no Bitcoin reserve legislation.
- Abbreviation
- CA
- Notable Legislation
- Digital Financial Assets Law (DFAL, 2023)
- Bitcoin Mining Rights
- No
- Bitcoin Friendly Score
- low
More Bitcoin States
Arizona
Arizona signed limited Bitcoin reserve legislation allowing the state to hold Bitcoin from seized or forfeited assets, rather than purchasing it outright. This establishes a legal framework for Arizona to become a state Bitcoin holder through law enforcement activities. Arizona also considered more expansive Bitcoin reserve bills that would allow active treasury purchases, but these faced additional hurdles. Arizona's large retirement system (PSPRS) managing over $14 billion makes any state-level Bitcoin allocation strategically significant.
New Hampshire
New Hampshire became the first US state to sign a Bitcoin strategic reserve law into effect, with Governor Kelly Ayotte signing HB 302 in 2025. The law allows the state treasurer to invest up to 5% of certain state funds in Bitcoin and precious metals. Consistent with its "Live Free or Die" motto and libertarian political culture, New Hampshire also hosts the Free State Project — a movement of libertarians relocating to the state — many of whom are Bitcoin advocates.
Texas
One of the most Bitcoin-friendly states. Passed strategic Bitcoin reserve legislation and purchased ~$5M in BlackRock Bitcoin ETF (Nov 2025). Home to major mining operations and a supportive regulatory environment.
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