GENIUS Act May Elevate XRP as Regulated Stablecoin Bridge

The U.S. Department of the Treasury has initiated a public comment period on the proposed rules under the GENIUS Act, a bipartisan legislative effort aimed at establishing a federal regulatory framework for stablecoins. The legislation, which passed the Senate in June 2025 and is now under House consideration, mandates that stablecoin issuers maintain 100% reserve backing with liquid assets such as U.S. Treasuries or cash equivalents, undergo regular audits, and obtain licensing through federal regulators. The Treasury’s move signals a critical step toward finalizing the regulatory architecture for the $217 billion stablecoin market, which includes major tokens like Tether’s USDT and Circle’s USDC.

Ripple, a key player in the stablecoin space, has positioned its RLUSD stablecoin to comply with the GENIUS Act’s requirements. The company has applied for a national trust bank charter and a Federal Reserve master account, while also securing BNY Mellon as the custodian for RLUSD reserves, which include U.S. Treasuries and money market funds. These actions align with the Act’s emphasis on transparency and institutional trust, potentially giving Ripple a first-mover advantage in the regulated stablecoin market. The legislation’s passage would enable RLUSD to qualify as a federally compliant stablecoin, enhancing its appeal to institutional investors.

The GENIUS Act also shifts regulatory oversight from the Securities and Exchange Commission (SEC) to the Treasury and the Office of the Comptroller of the Currency (OCC), a strategic move that reduces the SEC’s authority over stablecoins. This shift is seen as favorable for XRP, Ripple’s native token, which operates as a liquidity bridge for cross-border payments. Analysts argue that the Act’s framework could amplify XRP’s utility by integrating it into regulated stablecoin ecosystems, particularly in scenarios where real-time foreign exchange swaps or stablecoin conversions are required.

Market participants highlight the broader implications of the GENIUS Act for cross-border payment infrastructure. While stablecoins excel at value preservation, they face limitations in transferring value across disparate financial systems. XRP’s ability to facilitate instant, low-risk transactions positions it as a complementary asset in corridors where speed and trust are critical. Ripple’s global banking partnerships, spanning institutions like Santander, CIBC, and Kotak Mahindra Bank, underscore the token’s potential to coexist with stablecoins in a hybrid financial ecosystem.

The Treasury’s comment period invites stakeholders to weigh in on the finalization of the Act’s implementation guidelines, which will be enforced six months after the legislation’s enactment. This process reflects the administration’s commitment to fostering innovation while safeguarding consumer interests and national security. As the House prepares to finalize the bill, the market awaits clarity on how the new rules will shape the competitive landscape for stablecoin issuers and bridge assets like XRP.