Is it possible to circumvent this with a vpn too for a lot of sites or is there tougher legislation about that (such as proof of address).
This probably adds the an argument of trying to make things more decentralised. Convert to cash with a large company (I assume coinbase and binance are still operating there, binance is operating in the UK illegally still lol) and just use dexes for converting between cryptos (and stable coins).
A VPN from NY or some other state to some location in another unbanned state in the US should do fine, but not one to a different country obviously. The exchanges seem to care only that you are using the account in the US as you are supposed to, but they don't have the means to track your state - it's not on your ID card, so it can only be determined from the IP address, which has just been masked.
It would be better if there was VPN software that tunneled your connection only for specific websites / domain names.