Bitcoin-Backed Loans in Washington (2026)
7 of the 7 Bitcoin-backed loan lenders we track serve Washington, with rates from 7.25% APR. Here is who lends in Washington, who doesn't, and what each offers.
Washington is a rare no-income-tax state that still taxes large crypto sales at up to 9.9%, which sharpens the case for borrowing against Bitcoin instead of selling it. Lending access is broadly nationwide, since the state's crypto rules target custodians and exchanges rather than collateralized borrowers.
Availability verified August 1, 2026 · Verified daily · Washington tax and regulatory review July 22, 2026
Sell or borrow in Washington: the tax math
Selling a large Bitcoin position in Washington can trigger a 7% to 9.9% state capital gains tax on top of federal tax. Borrowing against the same BTC is not a sale, so it is not a taxable event.
Washington levies no general personal income tax, but it is not a zero-tax state for large crypto sales. Since 2022 it has imposed a capital gains excise tax that reaches long-term Bitcoin gains, charging 7% on gains above an inflation-adjusted annual standard deduction (in the high $200,000s for 2026) and 9.9% on the portion of gains above $1 million under SB 5813, effective for the 2025 tax year. Home sales and assets in retirement accounts are exempt, but a large realized BTC gain generally is not.
Important: not tax or legal advice
The tax and regulatory information on this page is general information, not tax, legal, or investment advice, and the rates shown are illustrative top-of-schedule figures, not a calculation of what you personally would owe. borrowonbitcoin.com is published by Sypher Capital; we are a publisher and affiliate referral source, not a lender, broker, registered investment advisor, tax preparer, or law firm. The state and federal figures here are compiled from public sources, including IRS Revenue Procedures, state departments of revenue and taxation, state statutes, and the Tax Foundation, and are current only as of the tax year shown; the sources are linked at the foot of this page. Tax and licensing law change, sometimes mid-year, and how any of it applies to you depends on your income, filing status, residency, cost basis, holding period, local taxes, and other facts this page does not capture, so your actual result can differ materially. The tax treatment of Bitcoin-backed loans is itself unsettled and still developing. Borrowing against Bitcoin carries its own risks, including forced liquidation of your collateral. Lender availability and a state's rules can both change; confirm current eligibility with the lender, and confirm your own tax situation with a CPA or qualified tax professional, before acting on anything here.
Washington tax and regulatory facts for the 2026 tax year, last reviewed July 22, 2026. Sources are listed at the foot of this page.
Lenders available in Washington
| Lender | APR | Max LTV | Custody | Eligibility note | Review |
|---|---|---|---|---|---|
 Arch (Standard) | APRfrom 7.25% | Max LTVup to 60% | CustodyQualified custodian | From $5,000 | Learn More |
 SALT | APRfrom 7.49% | Max LTVup to 70% | CustodyLender-held | From $5,000 | Learn More |
 Strike | APRfrom 7.75% | Max LTVup to 50% | CustodyLender-held | From $10,000 | Learn More |
 Ledn | APRfrom 9.25% | Max LTVup to 50% | CustodyQualified custodian | From $1,000 | Learn More |
 Figure | APRfrom 9.76% | Max LTVup to 75% | CustodyLender-held | Minimum on request | Learn More |
 APX Lending | APRfrom 9.99% | Max LTVup to 60% | CustodyQualified custodian | US loans paid in USDC · $25k min | Learn More |
 Unchained | APRfrom 14.18% | Max LTVup to 50% | CustodyCollaborative multisig | Commercial only · entities · $150k min | Learn More |
Estimate your rate in Washington
Borrowing $100,000 against 3.18 BTC ($200,000) is 50% LTV. BTC reference ≈ $62,800.
6 lenders serve Washington at this size and LTV, lowest effective APR first. Effective APR includes origination fees.
SALTLowest APRFigureArch (Standard)APX LendingStrikeLednWhy lender coverage looks the way it does in Washington
Washington has no BitLicense-style crypto lending regime. It regulates virtual currency businesses such as exchanges, custodians, and transmitters as money transmitters under the Uniform Money Services Act (RCW 19.230), supervised by the Department of Financial Institutions. Those rules mainly govern platforms that hold or move customer crypto rather than the act of pledging your own BTC for a loan, so availability is broadly nationwide subject to each lender's own multistate licensing.
Bitcoin and crypto in Washington
Washington was an early state to address distributed ledger technology, and its DFI publishes consumer guidance placing virtual currency under existing money-transmission rules rather than a bespoke crypto statute. The state has not adopted a strategic Bitcoin reserve. In February 2026 the DFI entered a $150,000 consent order against a digital-asset-focused money transmitter, requiring it to surrender its license over net-worth and reporting failures, which signals active supervision rather than a hostile posture.
Washington bitcoin law & policy tracker (2026)
Last reviewed · Reviewed quarterly
Washington is the strangest tax jurisdiction in America for bitcoin holders, with no income tax but a capital gains excise tax that follows residents wherever they trade. In 2026 its cities, not its legislature, made the crypto news.
How the capital gains tax actually hits bitcoin
Three details matter beyond the headline rates, and most coverage misses all of them.
- It definitely applies to BTC. The Department of Revenue's own FAQ classifies cryptocurrency as intangible property, and intangibles are allocated to Washington by domicile under RCW 82.87.100, meaning a WA resident owes the tax on gains even if the sale happens on an out-of-state or offshore exchange. Moving your account does not move the tax. Only moving yourself does.
- Only long-term gains are taxed. The excise tax reaches only gains on assets held more than a year. A short-term flip escapes Washington tax entirely, federal only, an inversion of the usual incentive that makes Washington possibly the only state that taxes patient bitcoin holders more than day traders. It also sharpens the case for never selling long-held BTC at all: borrow against it instead and the 7% to 9.9% state bill never crystallizes.
- The $1M surcharge threshold is not inflation-indexed. The standard deduction adjusts annually, around $278,000 for 2025, but the line where the extra 2.9% kicks in stays fixed at $1 million, so bracket creep pulls more sellers into the 9.9% band every year bitcoin appreciates.
Because the tax only ever bites on a disposal, the timing question is the whole question here. Borrowing against bitcoin is not a sale, and the bitcoin loan calculator puts the interest cost of waiting next to the excise bill a sale would trigger.
Laws on the books
- In effect 2017SSB 5031 (2017)
Uniform Money Services Act, amended for virtual currency
Washington's operative crypto statute remains the 2017 amendment to the Uniform Money Services Act, which pulled virtual currency into money-transmission licensing and imposed real obligations on custodians: $100,000 minimum tangible net worth, 1:1 like-kind holdings of customer virtual currency, and third-party security audits. Nearly a decade on, it is still one of the few state laws mandating full crypto reserves.
- Still operativeDFI interim guidance (2014)
No new digital-asset legislation since
No new digital-asset legislation was enacted in the 2024 to 2026 sessions. DFI still operates under its December 2014 interim guidance, which licenses exchange, hosted-wallet and transmission activity but is silent on collateralized lending.
On the horizon
- Stalled twiceESB 5280
Kiosk bill stuck in a loop
Licensing, transaction limits, fraud warnings and refunds for crypto ATMs. It passed the Senate in February 2025 and again in January 2026, then stalled in the House both times, drawing public condemnation from AARP. Expect a third run in 2027.
Cities are not waiting. In June 2025, Spokane became the first US city to ban crypto kiosks outright, citing $141.7 million in statewide scam losses. Spokane Valley followed with its own unanimous ban in 2026, and the Municipal Research and Services Center reports the bans are spreading across Washington towns. The emerging picture: friendly to online bitcoin finance, increasingly hostile to cash-based crypto kiosks.
Lending & borrowing
There is no crypto-lending-specific statute. The UMSA perimeter is the main one, and DFI has never formally applied the Consumer Loan Act to BTC-collateral lenders. Where DFI has been aggressive is crypto interest products: it joined the multistate Celsius actions and took part in the $22.5 million Nexo Earn settlement, a useful reminder of the difference between earn-side products, which draw securities scrutiny, and borrowing against your own coins, which is largely untouched. All seven lenders we track serve Washington.
Providers & industry
Washington was arguably America's first bitcoin-mining boomtown. The mid-Columbia basin, Wenatchee, Quincy and the Chelan, Grant and Douglas county PUDs, drew a wave of miners around 2014 to 2018 on some of the nation's cheapest hydro power, before county crackdowns and a 29% miner-specific rate hike cooled the rush. Seattle's crypto lineage runs through kiosk-network pioneer Coinme and the former Bittrex exchange. Today the state's crypto economy is mostly online, which, given where its regulators are pointing, is exactly where Washington wants it.
Legislative status is current as of July 31, 2026 and re-checked quarterly. Bills move, take effect, and die between reviews, so confirm anything you plan to act on against the primary sources linked above and at the foot of this page. This is information, not legal or tax advice.
Lender availability above reflects each lender's stated state coverage, which we verify daily. This page is information, not legal or financial advice, and a lender's coverage or a state's rules can change, so confirm current eligibility with the lender when you apply.
Frequently asked
Does Washington tax profit from selling Bitcoin?
For large gains, yes. Washington has no general income tax, but its capital gains excise tax applies to long-term Bitcoin gains above an annual standard deduction (in the high $200,000s for 2026) at 7%, rising to 9.9% on the portion of gains over $1 million. Short-term gains and mining or staking income sit outside this particular tax but still face federal tax.
Is borrowing against my Bitcoin taxed in Washington?
No. Pledging Bitcoin as collateral for a loan is not a sale, so it does not realize a capital gain and does not trigger Washington's capital gains tax or federal capital gains tax. You receive cash while keeping your BTC exposure, though you take on loan interest and liquidation risk.
Can I get a Bitcoin-backed loan in Washington?
Generally yes. Washington has no crypto-specific lending ban, and its virtual currency rules mainly license exchanges and custodians as money transmitters. Whether a particular lender serves Washington depends on that lender's own state licensing, so availability varies by provider.
Can I get a Bitcoin-backed loan in Washington?
Yes. 7 of the Bitcoin-backed lenders we track serve Washington, with starting rates from 7.25% APR. They include Arch (Standard), SALT, Strike, Ledn, and others.
Which lenders offer Bitcoin-backed loans in Washington?
Arch (Standard), SALT, Strike, Ledn, Figure, APX Lending, Unchained all serve Washington according to their stated coverage, which we verify daily.
Are any Bitcoin loan lenders not available in Washington?
No. Every Bitcoin-backed loan lender we track serves Washington.
Bitcoin loans in nearby states
Sources
- Washington taxes long-term capital gains, including crypto, at 7% up to $1 million and 9.9% on gains above $1 million, effective for tax year 2025. · dor.wa.gov
- Washington levies no general personal income tax but imposes a separate capital gains excise tax. · taxfoundation.org
- Washington regulates virtual currency businesses as money transmitters under the Uniform Money Services Act (RCW 19.230), administered by the Department of Financial Institutions. · dfi.wa.gov
- In February 2026 the Washington DFI entered a $150,000 consent order against a digital-asset-focused money transmitter for net-worth and reporting violations. · infobytes.orrick.com
- Washington DOR FAQ: cryptocurrency is intangible property for the capital gains excise tax · dor.wa.gov
- RCW 82.87.100: intangibles allocated to Washington by domicile · app.leg.wa.gov
- Washington capital gains tax mechanics, thresholds and deduction · thestartuplawblog.com
- Washington Uniform Money Services Act virtual currency regime, including 1:1 reserve requirement · cryptoslate.com
- Washington DFI virtual currency interim guidance (December 2014) · dfi.wa.gov
- Washington ESB 5280 crypto kiosk bill report · lawfilesext.leg.wa.gov
- Crypto kiosk regulation effort stalls in the Washington House · tvw.org
- Spokane becomes the first US city to ban crypto ATMs · ccn.com
- MRSC on crypto kiosk bans spreading across Washington municipalities · mrsc.org
- Washington DFI participates in the $22.5 million multistate Nexo Capital settlement · dfi.wa.gov
- Central Washington bitcoin mining boom and the utility rate response · seattletimes.com
Cite this data
Bitcoin-backed loan availability in Washington: 7 of 7 tracked lenders serve the state, from 7.25% APR. borrow/on/bitcoin, verified August 1, 2026. https://borrowonbitcoin.com/bitcoin-loans/washington
Free to cite with attribution and a link. Media inquiries welcome.
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