GENIUS Act Sets US Stablecoin Rules and Sparks 9% XRP Rally
On July 17, 2025, the U.S. House and Senate passed the GENIUS Act, a landmark stablecoin regulation. The bill now awaits President Trump’s signature to become law by late 2026. The GENIUS Act establishes a national framework for U.S. dollar-backed stablecoins. Only licensed banks, credit unions and qualified fintech firms may issue compliant stablecoins. Issuers must hold one-to-one USD reserves, submit monthly third-party audits and operate under federal or state supervision. Algorithmic and non-dollar-pegged tokens are excluded. The law grants holders priority claims on reserves and bans issuers from offering interest. Non-compliant projects, including foreign stablecoins, face U.S. market bans after three years unless home-country rules match. Multi-agency oversight by the OCC, FDIC, Fed, NCUA and Treasury will drive implementation. Regulators have 120–180 days after signing to issue detailed rules, with full enforcement expected by the end of 2026. The clarity has already sparked a 9% XRP rally, as major firms like JPMorgan and Coinbase welcome the GENIUS Act as a catalyst for institutional stablecoin adoption.
Bullish
In the short term, the GENIUS Act removes major regulatory uncertainty around U.S. stablecoins, triggering a swift 9% rally in XRP as traders anticipate higher on-chain volumes and institutional partnerships. Over the long term, clear licensing rules and multi-agency oversight will attract banks and fintech firms, fostering wider adoption of regulated stablecoins. While restrictions on interest-bearing products may divert some DeFi liquidity, the overall clarity supports market stability and growth, benefiting XRP and related crypto networks.