XRP News Today: US Senate Passes Genius Act 68-30, Boosting Stablecoin Regulation and XRP Utility

The US Senate has passed the Genius Act, a significant stablecoin bill, with a strong 68-30 vote. This legislation is set to move to the House for quick passage before heading to the President's desk for final approval. The new law aims to establish clear rules for companies issuing stablecoins, such as Circle’s USDC and other dollar-backed digital assets. While crypto enthusiasts celebrate this progress, it has ignited a debate about the implications for other major players like XRP.

There is a concern that the rise of regulated, fast, and reliable stablecoins could diminish the need for XRP in cross-border payments and liquidity solutions. However, industry experts argue that this could actually enhance XRP’s utility. Banks and businesses may increasingly use stablecoins for certain transactions, but they will still require a neutral bridge asset like XRP for specific markets and transactions.

Currently, there are approximately $27 trillion in Nostro/Vostro accounts, which banks use to settle cross-border payments. An industry expert suggests that this figure could exceed $50 trillion as banks are unlikely to trust each other’s stablecoins. This scenario positions XRP as a neutral, decentralized bridge asset that banks can trust, making it a key player in global value transfer.

A recent post from the Britto community, dedicated to the co-creator of the XRPL, Arthur Britto, clarified that the view of stablecoins replacing XRP overlooks the key differences between the two. Stablecoins are digital versions of fiat currencies, designed to hold value rather than transfer it across systems. For instance, sending money from Japan to Mexico using stablecoins is complex and requires pre-funded accounts. In contrast, XRP facilitates instant transfers without such requirements, making it better suited for global transfers due to its decentralized liquidity and speed.

Corporate treasuries are increasingly building up reserves of XRP, and its ledger has received a significant upgrade expected to attract more banks. This upgrade is seen as a crucial step in enhancing the utility and visibility of XRP, especially as Ripple continues to bridge traditional finance with blockchain technology. The success of stablecoins is anticipated to translate into greater utility and visibility for XRP. As more institutions adopt XRP, many are likely to hold substantial reserves, which could remove a significant amount of XRP from active circulation. This trend is supported by a 2025 study cited in recent academic literature, which concludes that a settlement in harmony with stablecoin regulations could support XRP's role in the financial ecosystem. The study suggests that stablecoins could reshape banking, but not without addressing regulatory challenges.

The potential impact of unlocking XRP's dormant value for decentralized finance (DeFi) cannot be overstated. With a market capitalization exceeding $125 billion, XRP represents a significant asset in the DeFi space. Flare, a protocol that unlocks XRP for DeFi, is transforming XRP's role by introducing secure cross-chain protocols, liquid staking, and stablecoins. This transformation is expected to enhance XRP's utility and attract more users to the network.

The XRP Ledger has experienced a significant rise in daily active addresses and whale accumulation, indicating growing confidence in the network's future. This surge in activity suggests that more users and institutions are recognizing the potential of XRP and are investing in it. The network's growing adoption and the increasing number of active addresses are positive indicators of its future prospects.

The Treasury Secretary has highlighted the potential of stablecoins to significantly increase demand for U.S. Treasuries, which could lower government borrowing costs and help stabilize the economy. This development could further boost the demand for XRP, as it is seen as a key player in the stablecoin ecosystem. The growing interest in stablecoins and their potential to reshape the financial landscape is likely to have a positive impact on XRP's need and importance in the coming years.