GENIUS Act Boosts Ripple’s XRP and RLUSD in Cross-Border Payments
The U.S. Senate’s bipartisan passage of the GENIUS Act establishes a comprehensive federal framework for stablecoin regulation, offering regulatory certainty and promoting innovation in digital payments. Ripple, armed with its dollar-pegged stablecoin RLUSD (market cap $415 million) and over 50 state money transmitter licenses, is well positioned to leverage this legislation. RLUSD’s full backing by U.S. dollar reserves and monthly attestations aligns with the Act’s requirements, while XRP transaction fees facilitate supply burns that could support token value. As the bill moves to the House and gains White House backing, institutional adoption of RLUSD—and by extension XRP—may accelerate. The GENIUS Act also positions RLUSD and XRP as viable alternatives to CBDCs, potentially boosting long-term confidence and market uptake.
Bullish
The GENIUS Act’s federal clarity on stablecoin issuance directly benefits Ripple by reducing regulatory risk, a key factor for institutional onboarding. RLUSD’s regulatory alignment and XRP’s supply-burn mechanism echo past bull signals seen when EU MiCA provided clear rules for crypto markets, driving asset inflows. In the short term, increased institutional use of RLUSD may boost XRP demand for transaction fees, tightening supply. Longer term, positioning RLUSD and XRP as credible CBDC alternatives could solidify enterprise partnerships and expand global payment corridors, supporting sustained market growth.