The U.S. Congress has passed the GENIUS Act, a landmark law delivering long-awaited regulatory clarity for the $261.5 billion stablecoin market. This breakthrough could spark major adoption of Ripple’s RLUSD stablecoin—built on the XRP Ledger—and indirectly fuel bullish momentum for XRP.
GENIUS Act: A Game-Changer for Stablecoin Regulation
Approved with bipartisan support (68-30 vote), the GENIUS Act imposes strict standards on stablecoins. The legislation mandates full reserve backing, independent audits, and proper licensing for issuers—finally ending the “Wild West” era of stablecoins.
Senator Bill Hagerty hailed the act as ushering in “a new era of payments,” making digital transactions faster, cheaper, and more transparent. For the crypto industry, this brings legitimacy and could accelerate stablecoin integration into traditional finance.
Why RLUSD Is Positioned to Benefit
Ripple’s RLUSD stablecoin is designed to comply fully with the GENIUS Act’s new standards. Crypto analyst SMQKE highlighted that RLUSD is primed for institutional adoption—appealing to banks, asset managers, and global corporations seeking regulatory-compliant digital assets.
‼️The GENIUS Act Passed — Document Reveals What It Means for RLUSD and XRP‼️
— SMQKE (@SMQKEDQG) June 17, 2025
• RLUSD Gains Credibility
The new law requires stablecoins to meet strict reserve and audit standards. RLUSD is expected to comply, making it more attractive to institutions.✅
• XRP Utility… pic.twitter.com/2DxDFWE15c
Built on the XRP Ledger, RLUSD offers fast, low-cost transactions with enhanced transparency. This positions RLUSD as a serious competitor to established stablecoins like USDT and USDC, and a potential rival to future central bank digital currencies (CBDCs).
RLUSD Adoption Could Drive XRP Price Higher
RLUSD’s impact on XRP is significant. Since RLUSD operates on the XRP Ledger, every transaction burns a small amount of XRP, reducing its circulating supply. As institutional adoption of RLUSD scales, this burn mechanism could gradually boost XRP’s value.
Despite a 7.5% dip in the last 30 days, XRP remains up 441.6% over the past year. With real-world use cases like RLUSD gaining traction, market sentiment remains bullish on XRP’s long-term potential.
Ripple and XRP Set to Compete in Global Digital Finance
The GENIUS Act may give RLUSD an edge over CBDCs, as regulatory clarity allows Ripple to launch and scale faster. As RLUSD adoption grows, XRP Ledger could become a core infrastructure layer for compliant digital finance worldwide.
Bottom line: The GENIUS Act is a pivotal win for Ripple’s RLUSD and XRP holders. Keep watching RLUSD’s growth—this could be the spark for the next big XRP rally.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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