XRP News Today: GENIUS Act Boosts Ripple's Stablecoin Ambitions, XRP Price Impact Limited

Generated by AI AgentCoin World
Monday, Jul 21, 2025 2:25 am ET1min read
XRP
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Aime RobotAime Summary

- The GENIUS Act creates a regulatory framework for stablecoins, enabling Ripple to launch RLUSD as a U.S. liquidity provider competing with USDC and PayPal USD.

- XRP price impact remains limited due to negligible network fee burns (59.1B coins in circulation) and Ripple's strategic shift toward RLUSD to reduce XRP reliance.

- XRP's security classification ambiguity persists, with regulatory uncertainty affecting institutional placements despite non-security status for exchange transactions.

- The proposed CLARITY Act could resolve XRP's legal status by formalizing digital asset transitions from securities to commodities, potentially enabling broader tokenization strategies.

The GENIUS Act, recently signed into law, provides a clear regulatory path for stablecoin issuers like

Ripple
, but its direct impact on XRP’s price is expected to be limited. The legislation aims to establish a framework for stablecoins, which could benefit Ripple's new stablecoin, RLUSD, in competing domestically with USDC and
PayPal
USD as a native U.S. liquidity provider.

Ripple’s strategic positioning in the cross-border payments sector could help RLUSD gain traction in the market. According to industry experts, the existence of RLUSD allows Ripple to become a core infrastructure provider within the U.S. financial system, competing directly with other stablecoins like USDC and PayPal USD. This move could help Ripple reconfigure itself as a key player in the domestic financial landscape.

However, any market share gains in the stablecoin arena are unlikely to translate into substantial price movements for XRP. The volume of XRP burned to cover network fees for RLUSD transactions is negligible compared to the 59.1 billion coins in circulation. Ripple CTO David Schwartz has previously stated that the burned XRP is unlikely to significantly reduce the supply in the near future.

The legal ambiguity surrounding XRP’s classification persists, with its status as a security remaining a contentious issue. While XRP is not deemed a security when sold programmatically on exchanges, it may constitute a security in institutional placements. This distinction leaves future classifications vulnerable to interpretation and regulatory uncertainty.

As a result, XRP is likely to continue serving as a bridge token, with minimal direct impact on its price from the GENIUS Act. The legislation allows Ripple to strategically reduce its reliance on XRP where regulatory uncertainty persists, particularly in the context of sales, by leveraging RLUSD. This approach enables Ripple to rebalance its exposure without abandoning its core technology stack.

If the proposed CLARITY Act, which aims to provide a formal path for digital assets to transition from securities to commodities, is adopted, it could bring clarity to XRP’s classification. This would eliminate ambiguity and potentially open the door for broader tokenization strategies for Ripple, according to industry analysts. The passage of the CLARITY Act would be a significant step towards resolving the regulatory uncertainties surrounding XRP and other digital assets.