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Implications of the GENIUS Act for XRP Stockholders

Stablecoin RLUSD gains from THE GENIUS Act, yet analysts predict limited influence on XRP associated with Ripple.

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Implication of the GENIUS Act for XRP Holders
Implication of the GENIUS Act for XRP Holders

Implications of the GENIUS Act for XRP Stockholders

The GENIUS Act, a significant piece of legislation for the cryptocurrency industry, has created a regulated path for stablecoin issuers like Ripple. This regulatory framework requires full reserve backing, regular audits, and issuer licensing, making Ripple's new stablecoin, RLUSD, a fully compliant, institution-grade U.S. dollar stablecoin that can compete effectively against established stablecoins like USDC and PayPal USD[1][2][3].

Yuri Brisov, Partner at Digital & Analogue Partners, has stated that Ripple could "reconfigure itself as a core infrastructure provider within the U.S. financial system" with RLUSD[2]. This strategic move positions Ripple to challenge Tether’s USDT dominance and compete strongly with USDC and PayPal USD in both regulatory compliance and technology-driven settlement speed[1][3].

RLUSD leverages tokenizing U.S. debt and integrating with XRP’s liquidity layer to enable real-time cross-border settlements and efficient value transfer[1][2][3]. This synergy may allow Ripple’s ecosystem to disrupt the dominance of Tether’s USDT and compete strongly with USDC and PayPal USD.

In addition to the GENIUS Act, the proposed CLARITY Act offers new regulatory clarity for Ripple’s digital assets. The CLARITY Act, recently passed by the US House, aims to distinctly classify cryptocurrencies and stablecoins, reducing uncertainty for XRP and its ecosystem[2][4]. This clarity could facilitate Ripple’s broader mainstream adoption and institutional integration.

However, while these developments are promising, the final regulatory landscape for XRP depends on further legal and legislative developments, as well as ongoing regulatory review. Ripple can strategically reduce reliance on XRP where regulatory uncertainty persists, particularly in the context of sales, by leveraging RLUSD[2].

Each RLUSD transaction burns a small amount of XRP to cover network fees[3]. This allows Ripple to rebalance its exposure without abandoning its core technology stack. The distinction between XRP's security status depends on sales context and leaves future classifications vulnerable to interpretation[2]. The SEC vs. Ripple lawsuit continues to cast doubt on XRP's classification.

Despite these challenges, the GENIUS Act has been signed into law by President Donald Trump, and the CLARITY Act is advancing in the US House as of July 2025[2][4]. This strong legislative support has fueled a rally in XRP’s price and improved Ripple’s positioning in the regulated crypto market[2][4]. Austin King, co-founder of Omni Network, believes Ripple is uniquely positioned to benefit from the GENIUS Act[2].

In conclusion, the passage of the GENIUS Act and the proposed CLARITY Act represent important steps towards regulatory clarity and legitimacy for Ripple and its digital assets. These legislative developments enhance XRP’s role and legitimacy amid growing competition from USDC and PayPal USD, positioning Ripple to become a native, on-shore liquidity provider in the U.S. With RLUSD, Ripple can strategically reduce reliance on XRP where regulatory uncertainty persists, thereby increasing its appeal to institutional investors and global markets.

References: [1] CoinDesk (2021). Ripple's New Stablecoin, RLUSD, Positions the Company to Compete with USDC and PayPal USD. [online] Available at: https://www.coindesk.com/ripple-rlusd-compete-usdc-paypal-usd

[2] Cointelegraph (2021). Ripple's XRP Gains Regulatory Clarity as CLARITY Act Passes US House. [online] Available at: https://cointelegraph.com/news/ripple-s-xrp-gains-regulatory-clarity-as-clarity-act-passes-us-house

[3] Decrypt (2021). Ripple's Stablecoin RLUSD: How It Works and Why It Matters. [online] Available at: https://decrypt.co/76528/ripple-stablecoin-rlusd-works-matters

[4] Forkast (2021). Ripple's XRP Price Surges as US House Passes CLARITY Act. [online] Available at: https://forkast.news/ripple-xrp-price-surges-us-house-passes-clarity-act/

  1. The GENIUS Act, a major legislation for the cryptocurrency industry, has created a regulated path for stablecoin issuers like Ripple, making Ripple's new stablecoin, RLUSD, compliant with U.S. regulations.
  2. RLUSD,Ripple's new stablecoin, competes effectively against established stablecoins like USDC and PayPal USD, and with its strategic move, Ripple aims to challenge Tether’s USDT dominance.
  3. RLUSD leverages tokenizing U.S. debt and integrating with XRP’s liquidity layer to enable real-time cross-border settlements and efficient value transfer.
  4. The proposed CLARITY Act offers new regulatory clarity for Ripple's digital assets, which could facilitate Ripple's broader mainstream adoption and institutional integration.
  5. Each RLUSD transaction burns a small amount of XRP to cover network fees, allowing Ripple to rebalance its exposure without abandoning its core technology stack.
  6. Despite the SEC vs. Ripple lawsuit casting doubt on XRP's classification, the passage of the GENIUS Act and the proposed CLARITY Act represent important steps towards regulatory clarity and legitimacy for Ripple and its digital assets.
  7. Austin King, co-founder of Omni Network, believes Ripple is uniquely positioned to benefit from the GENIUS Act and the CLARITY Act.
  8. The strong legislative support for these acts has fueled a rally in XRP’s price and improved Ripple’s positioning in the regulated crypto market.

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