Regulations and incentives for startups that favor crypto assets are reshaping the innovation map in the United States. The March 2026 update of the Draper Innovation Index found that states that support digital assets and emerging technologies increase their capacity to attract entrepreneurs, investment and new technology.
Texas and Oklahoma rose
In the index, states are ranked according to their ability to attract entrepreneurs, investment and new technologies. In the latest update, Texas moved up to fourth place in the US rankings, overtaking Wyoming, driven by an increase in overall venture capital investments, crypto and blockchain-focused funding, and a rise in startups.
Oklahoma also made one of the most remarkable leaps. The state rose to 15th place, fueled by a strong increase in startups and crypto-related venture capital investments.
Tim Draper emphasizes that founders are turning to more favorable regions due to the heavier tax burden, accumulated regulations and policies that do not reward risk.
Loss of momentum was seen in traditional centers
In contrast, California fell to 31st place and New York fell to 49th place. The index showed that despite large economies and well-established innovation ecosystems in both states, weakness in new company formation dragged down the rankings.
This picture reveals that economic size alone is not enough and that the founder-friendly policy framework has also become decisive. In particular, regions that adopt a more open approach to digital assets and new technologies are ahead in the competition.
New Hampshire attracted attention
New Hampshire came in third on the index, despite ranking 40th in gross domestic product and 42nd in population size. This result strengthened the view that policies more favorable to business can trump economic scale.
According to BizWorld data, the state’s tax structure and startup-friendly approach were effective in attracting entrepreneurs. The Draper Innovation Index also argues that innovation is shifting to regions where there are fewer barriers to founders.
The index reveals that policies that support business start-up and crypto and blockchain adoption are becoming increasingly important in determining where the next generation of startups will emerge.
There are also declines in global rankings
The index reflected not only the change within the USA but also the mobility in international rankings. Canada dropped from third to fifth place. Some other regions also experienced declines linked to instability and capital outflow.
Draper Innovation Index points out that tax policy, regulatory framework, capital access and approach to digital assets are becoming increasingly decisive topics in entrepreneurial ecosystems.
