GENIUS Act Clears Path for Ripple’s RLUSD and XRP vs USDT

Published: 2025-07-21 19:14:11 |

The U.S. House’s GENIUS Act establishes a clear regulatory framework for stablecoins, classifying issuers as financial institutions under the Bank Secrecy Act. It mandates 1:1 USD backing, annual audits, and robust AML/KYC controls. This stablecoin regulation has prompted banks like JPMorgan, Citigroup and Bank of America to explore or issue bank-backed tokens. Payment giants Visa, Mastercard and PayPal have already integrated regulated stablecoins, signaling broader institutional adoption. For Ripple, the GENIUS Act accelerates the launch of RLUSD, its XRPL-based stablecoin fully backed by USD and short-term Treasuries. Real-time, SWIFT-agnostic settlements on the XRP Ledger boost demand for XRP and position RLUSD/XRP as tools to globalize a digital dollar layer by tokenizing U.S. debt. Analysts predict this compliance framework will drive institutional flows into regulated assets. Tether’s USDT faces challenges under the new rules: its multi-asset reserves and lack of independent audits conflict with the 1:1 USD/Treasury requirement. Traders may shift capital toward transparent alternatives such as RLUSD and USDC. The GENIUS Act’s 18–36 month compliance window marks a turning point, heralding a new era of institutional-grade stablecoins and blockchain-based dollar tokens.

Bullish

The GENIUS Act’s regulatory clarity reduces uncertainty for stablecoins and classifies issuers under established banking rules. By mandating 1:1 USD backing and strict audits, it enhances institutional trust. Banks and payment firms moving into compliant tokens signal major capital inflows. For Ripple, RLUSD’s launch on XRPL and enhanced real-time settlement use cases boost XRP demand. Historical precedents show that when regulatory hurdles fall and institutional channels open, trading volumes and prices rise. Short-term traders will bid XRP ahead of RLUSD deployment, while long-term fundamentals strengthen as tokenized U.S. debt and robust compliance attract institutional liquidity.