“Some states in the US you cannot make cash transactions above a certain amount.”
Yeah, I don’t believe that states can regulate the maximum amount of cash one can spend.
Perhaps not, but they do have reporting requirements. Deposit X number of dollars in cash in your bank account in one transaction, the bank reports it. Deposit Y number of dollars in cash in your bank account (where Y is below the reporting requirement) in such a way as to look like you're deliberately trying to avoid the reporting requirement, and the bank reports it and the DA can come after you.
It's been standing law for a generation that any cash transaction over $10,000 must be reported to the Feds. This number will have changed over the years since then depending on the jurisdiction.
The states, just like the fed already does, can add paperwork though. They usually do this at the bank level, banks have paperwork to fill out handing out large quantities of cash, and paperwork when they take it in. Any business that doesn’t want to hassle with that kind of paperwork limits the cash they take in.