On July 18, 2025, the United States enacted the "Guiding and Establishing National Innovation for U. S. Stablecoins Act" (GENIUS Act). This law seeks to create a new framework for digital payments. While stablecoins are promoted by people invested in cryptocurrencies, the law itself calls for the creation of something fundamentally different than cryptocurrencies like Bitcoin. So, for the purpose of this article, when I use the word "cryptocurrency" I mean things like Bitcoin only, and not stablecoins. The law takes effect January 2027 or 120 days after regulators issue detailed regulations, whichever comes first. It attempts to establish certain consumer protections for stablecoins only which may or may not prove effective, only time will tell.
Stablecoins are NOT an Investment Opportunity
If you make speculative investments in cryptocurrencies, like Bitcoin, you may potentially make may make or lose money, just like you can if you exchange dollars for Euros or Yen. But, if someone suggests that you buy a stablecoin, it's likely a scam. Stablecoins attempt to establish a payment system with coins that are not supposed to fluctuate in value. So, the best you should hope for is to get your money back, though you can potentially lose it all. Several months ago, I was approached by a man staring at a screen displaying several hundred thousand dollars' worth of "value" in a worthless stablecoin. I was unable to help – his money was gone. Expect this if anything goes wrong in cryptocurrency dealings because users can be anonymous.
Bitcoin, Ethereum, and other Anti-Government Currencies
Bitcoin was created to establish a financial system outside the control of all governments. Law enforcement is supposed to be impossible by design since the users performing financial transactions can choose to be anonymous. This created a global commerce system free of all stifling regulations. Who among us hasn't been frustrated with a seemingly endless list of laws that often appears to make no sense? There are some unfortunate downsides, however, including the exponential increase in global cybercrime. Cryptocurrency made ransomware possible by providing a means to extort payment from cyberattacks without fear of law enforcement following the money and arresting bad actors. One man's wonderful freedom from stifling regulations is another man's global crime organization powered by cryptocurrency.
Some governments have tried to fight back against this middle finger to all law enforcement. China aggressively attempted to shut it down for years. They closed all exchanges in 2018 and then made the technology completely illegal in 2021. This appears to have reduced the ability to use it evade Chinese law enforcement. This is a government that is far more restrictive than the United States. China is arguably one of the places where cryptocurrency might have had one of the largest potential societal benefits increasing freedom from government control. As one might expect, it's one of the places where the government fought back the hardest. In the words of Tim May, the "father" of the cryptocurrency movement, a founding objective was "collapse of governments." His hope was that if governments cannot enforce laws, they become irrelevant and collapse. Cryptocurrency is arguably one of the most useful tools on earth to help overthrow governments, if you're into that kind of thing.
If You Choose to Invest
Setting aside governmental responses to the opportunities and risks, you have options to keep any crypto investment you make as safe as possible. There are at least limited protections such as Know Your Customer (KYC) laws only where dollars and cryptocurrency are exchanged. So, if you choose to invest, direct cryptocurrency purchases or crypto ETFs through brokerages are probably your best bet. You might also consider Coinbase, a cryptocurrency exchange. Of course, cryptocurrencies (not stablecoins) are speculative investments. So even with your broker or Coinbase – caveat emptor. If a friend (or, heaven forbid, someone on social media) approaches you with a crypto investment idea, just say no!
Are you trying to understand what this means for the future? Join the club! Several years ago, I was asked by a friend at the State Bar of Arizona to write an article explaining blockchain technology to lawyers. This led to writing a whole cautionary book about blockchain and cryptocurrency. While I understand the technology better than most cryptocurrency investors, nobody truly knows where this is all going to end up. If you have questions, email me at dkinsey@totalnetworks.com and I'd be happy to discuss.