Washington state now holds the top spot for Bitcoin adoption among US states, with 2.43% of 2022 tax returns indicating some form of crypto activity, according to a SmartAsset study published in October 2025.
That translates to roughly 91,310 households in Washington reporting crypto involvement to the IRS.
The state-by-state breakdown
Utah came in a close second at 2.36% participation in IRS-reported crypto activity. California, Colorado, and New Jersey rounded out the top five.
On the opposite end of the spectrum, West Virginia reported the lowest crypto activity rate at just 0.84%, with Mississippi not far ahead at 0.95%.
