Trump Enacts Genius Act, Marking a Milestone in U.S. Crypto Legislation
President Donald Trump has officially enacted the Genius Act, which establishes the first significant regulatory framework for cryptocurrencies in the United States, particularly focusing on stablecoins.
Gen Z’s Holiday Wish: Cryptocurrency
As the holiday season approaches in 2025, cryptocurrency has emerged as a trending gift. A recent survey by Visa revealed that 45% of Gen Z respondents are eager to receive cryptocurrency as a holiday present. However, the enthusiasm is not universally shared, as only 28% of consumers overall expressed a similar desire for digital currencies in their holiday stockings. This survey was conducted in October and included responses from 1,000 adults.
Bitcoin’s Price Decline: A Shift in Market Sentiment
Bitcoin, the leading cryptocurrency, has experienced a significant price surge in recent years, driven in part by the introduction of crypto exchange-traded funds (ETFs) and strong backing from President Trump. Nevertheless, recent trends indicate a sharp decline in Bitcoin’s value. This drop is attributed to market volatility, which often discourages investors from engaging with higher-risk assets like cryptocurrencies, as noted in an analysis by Investopedia. With Bitcoin currently trading at a lower price, the upcoming holiday season in 2025 might present a favorable opportunity for parents to consider buying Bitcoin as a gift for their Gen Z children, depending on individual sentiments towards cryptocurrency.
Is Cryptocurrency Primarily a Young Person’s Domain?
The appeal of cryptocurrency appears to be largely generational, with a notable male skew in ownership demographics. A Gallup poll from mid-2025 revealed the following ownership statistics by age and gender: 25% of men aged 18-49 own crypto, compared to 12% of men aged 50 and older, while only 8% of women aged 18-49 and 9% of those aged 50+ own cryptocurrencies. Craig J. Ferrantino, president of Craig James Financial Services, noted in a USA TODAY interview that millennials are well aware of peers who have become wealthy through cryptocurrency investments. Generation Z, those born between 1997 and 2012, have a unique connection to digital currencies, having grown up in the wake of Bitcoin’s launch in 2009.
Sam Taube, a lead investment writer at NerdWallet, attributes Gen Z’s interest in cryptocurrency to the economic pressures created by the COVID-19 inflation crisis. With inflation rates nearing 10%, many from this generation worry that traditional investments, such as the S&P 500’s average return of 10%, may not suffice to maintain their purchasing power, leading them to seek out higher-yielding investment options like cryptocurrencies. Conversely, many parents from previous generations may struggle to fully understand cryptocurrency. Jason Moser, a senior investment analyst at The Motley Fool, expressed skepticism, stating that the intangible nature of crypto makes it difficult for them to grasp its value.
Understanding Cryptocurrency: A Primer
Cryptocurrency functions as digital money, devoid of government or bank issuance, operating on decentralized networks. It utilizes blockchain technology, which securely records transactions and assets. Traditionally, individuals interested in buying or selling digital currencies had to navigate crypto exchanges, which could be intimidating for newcomers. However, in 2024, new federal regulations allowed average American investors to trade Bitcoin ETFs just like stocks. Moser remains skeptical about Bitcoin, arguing that its value is entirely dependent on what someone else is willing to pay for it, unlike traditional stocks, which have a clear connection to the underlying company’s value. In contrast, Caleb Silver, editor-in-chief at Investopedia, advocates for a modest allocation of cryptocurrency within a diverse investment portfolio, suggesting that it should not exceed 5%. With Bitcoin’s value soaring from virtually nothing to over $126,000 in October, Silver highlighted its impressive historical performance, although future trends remain uncertain.
Alternative Investment Options: Stocks Over Crypto
If the notion of gifting cryptocurrency doesn’t resonate, stocks present a straightforward alternative for those interested in introducing a young adult to investing. Parents can easily acquire individual stocks or shares of mutual funds or ETFs on behalf of their children. For minors, a custodial brokerage account can be established. Silver recommends that parents collaborate with their children to open a custodial account and select stocks and ETFs together, fostering a family-oriented approach to learning about investment. Moser suggests considering shares in an S&P 500 index ETF, which provides a broad exposure to the market, making it an excellent starting point for those new to investing, ultimately easing the transition to owning individual stocks.
