XRP News Today: GENIUS Act Boosts RLUSD Credibility, Drives XRP Utility

The crypto world is abuzz with the passage of the GENIUS Act, a legislation that extends its impact beyond stablecoins, potentially reshaping the landscape for RLUSD and XRP. The Act, primarily aimed at regulating USD-backed tokens like RLUSD, introduces stringent reserve, audit, and licensing requirements. These measures are expected to enhance RLUSD's credibility, making it more attractive to institutional investors who are increasingly evaluating digital assets for integration into their payment systems.

SMQKE, a prominent crypto researcher, highlighted that the GENIUS Act could significantly boost RLUSD's institutional legitimacy. The Act's provisions, as outlined in a policy analysis document, are designed to drive adoption and reshape institutional sentiment towards digital assets. This regulatory compliance could enhance RLUSD’s credibility, potentially driving increased institutional adoption. This development is crucial as large financial players assess which digital assets they can legally integrate into their payment flows.

Beyond RLUSD, the GENIUS Act also has implications for XRP. Since RLUSD operates on the XRP Ledger (XRPL), every transaction involving the stablecoin includes a small XRP-denominated fee. These fees are burned, creating a deflationary mechanism that, combined with growing RLUSD activity, suggests rising XRP utility. The document affirms that RLUSD’s adoption could lead to heightened demand for XRP, positioning it as a bridge asset for liquidity provision, particularly in systems requiring real-time settlement and transparency.

Though XRP is not a stablecoin, its integration within a regulated framework under the GENIUS Act could influence its regulatory classification. The document notes that if the Act sets a precedent for digital asset classification and oversight, XRP could more easily be recognized as the utility token it is. This regulatory clarity could pave the way for broader acceptance and use of XRP in the financial system.

Another significant aspect of the GENIUS Act is its potential to level the playing field between digital assets and central bank digital currencies (CBDCs). The Act formalizes stablecoin integration into financial systems, which could position RLUSD and XRP as viable alternatives to CBDCs. This development is particularly noteworthy given the previous ban on CBDC creation by the Trump administration. The Act's provisions make the integration of XRP and RLUSD into financial systems easier, potentially marking the beginning of a new phase in institutional adoption and growth for these digital assets.