In a landmark move, the U.S. Congress has passed the GENIUS Act, giving the green light to regulated dollar-backed stablecoins. While the law applies to the whole stablecoin market, early signs suggest it could be a big win for Ripple’s RLUSD, and by extension, XRP.
This could be the moment Ripple has been quietly preparing for.
What is the GENIUS Act, Why it Matters
The GENIUS Act, short for Guiding and Establishing National Innovation for U.S. Stablecoins, lays out the first real legal framework for stablecoins in America. Passed in the Senate with a 68-30 vote , the bill introduces strict standards for how U.S. dollar-backed tokens should operate.
The rules are clear:
- Stablecoins must be fully backed by reserves like cash or short-term Treasuries
- Mandatory third-party audits to ensure issuers aren’t playing games
- Licensing requirements for companies issuing these tokens
It’s the kind of clarity big institutions have been waiting for.
As Senator Bill Hagerty put it, the goal is simple: to modernize payments and give Americans better, faster options for digital money. With over $261 billion already locked in stablecoins like Tether (USDT) at $155.4B and USD Coin (USDC) at $61.4B, this law could completely shift the competitive landscape.
RLUSD: Built for This Moment
Now entering Ripple’s RLUSD, a U.S. dollar-pegged stablecoin launched on the XRP Ledger. From day one, Ripple’s approach with RLUSD was clear: make it regulation-ready. And that bet may now pay off.
Source: X Crypto analyst SMQKE posted that RLUSD is designed to tick every box in the GENIUS Act: transparency, backing, and compliance. In a market where most stablecoins either operate offshore or in legal gray zones, RLUSD is now positioned as one of the most institution-friendly options out there.
That’s big for banks, fintechs, and even governments exploring crypto payments.
What’s in it for XRP?
Here’s where it gets interesting. Every RLUSD transaction takes place on the XRP Ledger, and every time that happens, a small amount of XRP is burned.
That’s not just technical trivia, it matters economically. Less XRP in circulation, plus more demand to settle RLUSD-based payments, could push the price higher. And this isn’t speculation anymore. Over the past year, XRP is up 332%, even with short-term pullbacks.
As more institutions adopt RLUSD, XRP could quietly become the fuel behind the next phase of regulated digital finance.
Is XRP About to Get More Regulatory Clarity Too?
Although the GENIUS Act targets stablecoins, there’s another layer to this. Ripple has long argued that XRP is not a security, but rather a utility token used for real-time settlement. Now, with RLUSD operating under a regulated framework on the XRP Ledger, Ripple may finally have the case it needs.
According to policy notes shared online, this law could set the precedent for broader digital asset classification. That’s a game-changer if it means XRP’s role in the ecosystem becomes clearer in the eyes of lawmakers.
Ripple vs CBDCs? The Race Just Got Real
With Trump’s executive ban on CBDCs still in effect, and the GENIUS Act now law, stablecoins like RLUSD may fill the gap. Think about it: RLUSD runs on fast, cheap rails, is now fully compliant, and already works cross-border.
SMQKE calls it a “ synthetic CBDC ”—a private-sector alternative that ticks all the boxes without needing central bank control. That’s powerful, especially as more countries explore digital currencies but face political or technical roadblocks.
Ripple didn’t just build RLUSD for fun—it built it for this moment. Now that the U.S. has a clear stablecoin law in place, RLUSD is one of the only players ready to go from testnet to Wall Street. And XRP? It’s not just along for the ride. It might be the rails that power it all.
If institutions start piling into regulated digital assets, this could be the breakout moment for both RLUSD and XRP.
