Last month at our Q3 Workshop, I shared some fun history behind the way we spend money. I dove into money principles and wove in stories of Salt Amole bars, Spanish pieces of eight, Medici banking, the Fresno Drop, and eventually Apple Pay and crypto. This month, I want to continue that discussion with some recent developments in crypto regulation.
We touched on the “GENIUS Act”, which establishes a regulatory framework for payment stablecoins and generally requires them to be backed at least 1:1 by permitted reserve assets such as U.S. dollars, bank deposits, and short-term U.S. Treasuries. Unlike more volatile crypto assets, stablecoins are designed so that $1 of stablecoin ≈ $1 of readily available value.
Another interesting angle: the administration and Treasury Secretary Bessent see stablecoins as a new source of demand for U.S. Treasury debt. That could help finance growing federal deficits at lower interest rates. Helpful to Treasury, perhaps, but it also raises a longer-term question: does making government borrowing easier ultimately add to the inflationary and dollar-devaluation pressures we’ve discussed before?
So, what about the new CLARITY Act—what exactly are we “clarifying”? The goal is to establish clearer rules for digital assets, including which regulatory body has authority over different types of crypto assets, the SEC for securities and the CFTC for commodities. It passed the House in 2025, but its path through the Senate hit a roadblock on September 15. A procedural vote to advance the legislation received a 50–49 majority but fell short of the 60 votes required to move forward. For now, the effort is stalled, but the larger debate over how crypto fits into our financial system is far from over.
Let us know if you missed out on our last workshop and would like the recording!
Financial Jargon:
GENIUS = Guiding and Establishing National Innovation for U.S. Stablecoins Act
SEC = Securities and Exchange Commission
CFTC = Commodity Futures Trading Commission
October’s Breast Cancer Awareness Month is a meaningful reminder to pause and think about what matters most—our health, our families, and the people we care about. My own family is currently facing some health challenges, and it has given me a very personal perspective on the importance of appreciating each day and taking care of ourselves and one another.
As the seasons change and calendars begin filling with dinners, celebrations, family visits, and holiday plans, my recommendation this month is the book, The Art of Gathering by Priya Parker.