XRP News Today: GENIUS Act Signed Boosts Ethereum 25% to $3,824

On July 18, 2025, President Trump signed the GENIUS Act into law, marking a pivotal moment for the digital asset landscape in the U.S. The act, formally known as the "Guiding and Enabling the Nationwide Innovation of US Stablecoins" Act, establishes a comprehensive regulatory framework for stablecoin issuers, allowing them to operate under federal charters and adhere to specific reserve and audit standards. This legislation is anticipated to enhance the legitimacy and adoption of stablecoins within the United States.

The GENIUS Act provides a clear legal framework for stablecoins such as USDC, PayPal USD, and Ripple’s RLUSD, facilitating their integration into institutional finance and payment systems. Ripple’s RLUSD, in particular, stands to benefit from the act’s legal clarity, positioning itself as a compliant, regulated stablecoin within the U.S. Unlike decentralized or offshore stablecoins, RLUSD could serve as a native liquidity provider for on-shore financial transactions, potentially giving Ripple a role akin to a financial infrastructure provider in the regulated U.S. market.

However, the GENIUS Act is not expected to significantly impact the price of Ripple’s native XRP token. The two are functionally separate, with XRP continuing to serve as a bridge token on the XRP Ledger. Although RLUSD will operate on the XRP Ledger and every transaction will burn a small amount of XRP to pay network fees, the volume is too low to materially affect the coin’s price or supply. Since inception, only 14 million XRP tokens have been burned, while the circulating supply remains over 59.1 billion. This indicates that even under heavy usage, token burns through stablecoin transactions will not significantly influence XRP’s deflation rate or valuation.

The broader regulatory environment for XRP remains uncertain, as Ripple’s legal battle with the US Securities and Exchange Commission (SEC) continues. A previous ruling determined that XRP is not a security when sold on public exchanges but may be classified as one in institutional placements. This duality in classification introduces lingering uncertainty about XRP’s long-term regulatory status. The current ambiguity impacts Ripple’s ability to rely solely on XRP within the U.S. In this context, the GENIUS Act provides Ripple with a compliant alternative in RLUSD, reducing regulatory exposure in XRP-heavy transactions. This shift enables the company to broaden its reach in regulated financial environments while maintaining its core blockchain infrastructure.

Looking ahead, further legislative developments could reshape Ripple’s token strategy. The pending CLARITY Act proposes a formal path for digital assets to transition from securities to commodities over time. If passed, it could eliminate the regulatory ambiguity surrounding XRP’s classification and facilitate broader tokenization strategies involving Ripple’s ecosystem. In the meantime, RLUSD provides a way for Ripple to participate in the stablecoin market without depending on XRP in uncertain regulatory conditions. This dual-token strategy offers flexibility, allowing Ripple to align with evolving U.S. regulations while continuing to promote its ledger technology.

The signing of the GENIUS Act has also renewed optimism around the Ethereum ecosystem. Ethereum prices surged 25% following the act, reaching $3,824, illustrating market confidence. Major institutional investors are reportedly increasing ETH allocations, potentially driven by the act’s regulatory clarity and investor confidence. Ethereum ETFs recorded substantial inflows of $726.74 million post-signing. Ethereum (ETH), currently priced at $3,703.05, has witnessed a significant price increase of 24.34% over the past week. The asset’s market cap stands at 447000179874, with a dominant presence in the cryptocurrency market at 11.47%. Notably, Ethereum’s 90-day price increase of 106.19% reflects strong growth in recent months.

The GENIUS Act’s effect on regulatory clarity presents potential for a transformative impact on digital asset markets. Ethereum’s robust performance and institutional backing could advance its role in global financial systems, leading to expanded DeFi applications and broader adoption. The act positions the U.S. as a leader in digital asset regulation, catalyzing investment in Ethereum. Ether Machine CEO Andrew Keys suggests Ethereum may benefit most, though direct statements from Keys on primary platforms remain absent. The legislation is seen as a strategic move supporting technological advances in the blockchain sector.