- The GENIUS Act, signed into law by President Donald Trump, creates clearer regulations for U.S. stablecoin issuers.
- Ripple is now positioned to compete in the stablecoin market with its RLUSD token against established players like USDC and Paypal USD.
- The law is not expected to have a major impact on the price of XRP, Ripple’s cryptocurrency.
- Regulatory uncertainty for XRP remains, as its security status depends on how and where it is sold.
- Future legislative efforts, like the proposed CLARITY Act, may bring further legal clarity for XRP’s classification.
President Donald Trump signed the GENIUS Act on Friday, giving stablecoin issuers in the United States, like Ripple, a regulated path for operations. The law is designed to clarify legal and compliance standards for companies issuing stablecoins, which are cryptocurrencies tied to the value of the U.S. dollar.
Ripple recently launched RLUSD, its own stablecoin, placing it in direct competition with USDC and PayPal USD in the U.S. market. Austin King, co-founder of Omni Network, said the new law gives stablecoins like USDC and RLUSD a “competitive advantage” in gaining adoption among institutional investors.
While other companies like Circle’s USDC and Tether’s USDT compete to keep their share of the market, experts say Ripple‘s cross-border infrastructure gives RLUSD the chance to grow domestically. Yuri Brisov, Partner at Digital & Analogue Partners, said RLUSD enables Ripple to act as an on-shore liquidity provider. He stated this move allows the firm to “reconfigure itself as a core infrastructure provider within the U.S. financial system.”
However, sources noted that expected gains in the stablecoin sector will not lead to large price changes for XRP. Even though every RLUSD transaction burns a small amount of XRP for network fees, the effect is minimal given the 59.1 billion XRP coins in circulation. Since its launch, the XRP Ledger has burned only 14 million XRP tokens. Ripple CTO David Schwartz previously said, “I still don’t think burned XRP will significantly reduce the supply any time soon,” as referenced in his statement.
Legal uncertainty remains over XRP’s status. According to Brisov, XRP is not considered a security when traded on public exchanges but “may constitute a security in institutional placements.” This distinction leaves future classifications open to interpretation.
Brisov added that the new legislation allows Ripple to decrease its use of XRP in uncertain regulatory situations by using RLUSD. He explained this lets the company reduce risk without changing its core technology.
Should the proposed CLARITY Act pass, it would offer a process for digital assets like XRP to shift from being classified as securities to commodities. Brisov believes this would remove much of the uncertainty and could support Ripple‘s broader token strategies in the future.
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