In the past few years, Los Angeles businesses have showed their support for cryptocurrencies by offering payment options in digital currencies such as bitcoin and ethereum.

One specific cryptocurrency, stablecoin, recently got a vote of confidence when President Donald Trump signed into law the Genius Act, which develops the first federal regulatory framework for cryptocurrencies.

Crypto market watchers, such as James Willliams, an attorney specializing in cryptocurrency for Century City-based Manatt, Phelps & Phillips, said the law is a gamechanger.

“It removed uncertainty,” Williams said of the Genius Act. “It will bring clarity for main street retail users and businesses, not just the global financial elites. Merchants will now be able to accept stablecoin with peace of mind, knowing it is a U.S. regulated asset.”

The law’s passage made an impact on the wider crypto market. The ether cryptocurrency token of the ethereum network hit $3,795.40, its highest level for the year on July 20, a couple of days after the Genius Act was signed, according to Reuters. Bitcoin exchange-traded funds hit a record breaking $1.18 billion last month, according to crypto trade journal CoinDesk.

It’s more proof that crypto is being embraced, said Isaiah Douglass, managing director at Calabasas-based Swan Bitcoin, a bitcoin financial services firm.

“This surge in accumulation underscores strategic adoption, not speculative hype,” Douglass said in a statement.

He anticipated the Genius Act would help boost the profile of other cryptocurrencies.

“We see stablecoin and bitcoin operating in parallel for the foreseeable future. The U.S. government’s increasingly positive stance on both bitcoin and stablecoins bodes well for their global adoption in the latter half of this decade,” Douglass said.

As the market develops, a small group of Los Angeles entrepreneurs and business figures have signaled their belief in cryptocurrency and offered it as a payment option.

However, the number of Americans using cryptocurrencies remains relatively small. A survey from the Federal Reserve Bank found that 8% of American adults used cryptocurrency for investments and financial transactions in 2024.

The market cap for cryptocurrency has skyrocketed in the past nine years, according to a survey from the U.S. Treasury Department. It grew from $7 billion in 2015 to a market cap of $2.3 trillion in 2024. A survey released in January by Ernst & Young showed that 59% of institutional investors it surveyed plan to allocate more than 5% of their assets under management to cryptocurrencies.

The Genius Act – an acronym for Guiding and Establishing National Innovation for U.S. Stablecoins – calls for reserve requirements for stablecoin or pegging stablecoin to the U.S. dollar. The regulation makes it less volatile than other cryptocurrencies. The law requires strict marketing rules to protect consumers from fraudulent practices. Stablecoin issuers must make monthly public disclosures of their reserves.

More payment options

Aaron Kirman, founder and chief executive officer of the high-marquee luxury real estate agency Christie’s SoCal, recently unveiled a team of 10 real estate agents who will specialize in handling crypto deals. This team works with about 20 outside consultants, such as lawyers and escrow agents. Crypto deals require extra work because they are put together without the services of traditional banks.

Kirman said that Christie’s SoCal – based in Beverly Hills – is the sole trophy home brokerage in Los Angeles, offering to close deals with crypto. He felt compelled to provide crypto because his high-net-worth clients were demanding it.

The Christie’s SoCal crypto team has been active for about 18 months. The team has closed $200 million in crypto deals with another $50 million in escrow, he said. He predicted that 25% of future deals would be made in cryptocurrency.

The volatility of cryptocurrency markets is a concern for Christie’s SoCal’s agents. A crypto deal typically starts with a dollar price being agreed, and then buyers seek to match that dollar amount with a cryptocurrency. The agency has worked with crypto such as bitcoin, Ethereum and Tether (also known as USDT), recently.

But markets can be volatile, and crypto wallets can decline in value. “Buyers always want to close as fast as possible when a cryptocurrency is up,” Kirman said. “Crypto deals are shorter than others.”

Bitcoin is available as a form of payment for residential and retail units for real estate company Caruso, which owns and manages luxury retail and mixed-use properties such as The Grove and The Americana at Brand. In a 2021 statement, Rick Caruso also said that cryptocurrency would be used to buy goods and services at his malls. But it is unclear whether retailers at Caruso properties accept the digital currency.

“We envision a myriad of opportunities where we can better engage our guests and enhance their experience on our properties like introducing blockchain-enabled rewards and enabling cryptocurrency payments,” Caruso said.

‘Transformed into mainstream’

Cryptocurrency is also making inroads at restaurants and retailers.

In April, Beverly Hills-based Fat Brands Inc., parent company of Fatburger and Round Table Pizza, announced that its franchisees would have the option to pay royalty payments in bitcoin, said Thayer Wiederhorn, the company’s chief operating officer.

“Over the years, bitcoin has transformed into a mainstream asset and, as a company, we see great value in expanding our forms of payments for our franchisees, especially for our international partners, who make up over 20% of our portfolio,” Wiederhorn said. “We look forward to utilizing bitcoin as an efficient tool for streamlining and simplifying the payment process and are excited to be at the forefront of this evolution in embracing bitcoin as it continues to grow in popularity.”

Fat Brands did not answer emails requesting further comment.

Conversely, cannabis dispensaries have not embraced cryptocurrency, said Nicholas Lee, founder of Bored N Stone dispensary in Koreatown.

Dispensaries historically have had a strained relationship with traditional banks due to marijuana being illegal at the federal level. But Lee said many of his colleagues hesitate to use cryptocurrency because of its volatility. They have security concerns for hacks and scams, and it takes time to figure out how to use a crypto wallet.

However, Lee has been an advocate for cryptocurrency. “The hesitation is not understanding the benefits of crypto; it gives people more control, privacy, opportunity and access, all while bypassing traditional financial systems,” Lee wrote in an email. “We remain optimistic. Better user experience, clearer regulation, and more stable solutions, such as stablecoin, could push adoption forward.”