If you create an EFT account from the quick finalyse page, at the ordermgr/control/createPostalAddress the US states which are proposed by default are not the US states but all states. You still can pick one US state, but it's counter intuitive.
If you try to use the proposed alternative
Here is some alternate code to get states limited to a region
You get an error at line 35, column 22
Dependent dropdowns should be used in States.ftl