GENIUS Act Boosts Ripple USD but Not XRP
The United States has passed the so-called GENIUS Act, a law that lays a regulatory framework for stablecoins like the new Ripple USD (RLUSD).
The United States has passed the so-called GENIUS Act, a law that lays a regulatory foundation for stablecoins like the new Ripple USD (RLUSD). For Ripple, this legislative win gives a hefty push to rolling out its own stablecoin. Yet the impact on the crypto token XRP appears limited for now.
“Ripple is uniquely positioned to benefit from this regulation,” says Austin King, co-founder of Omni Network, in a reaction to Decrypt. According to him, the GENIUS Act ensures that stablecoins like USDC and RLUSD gain an edge when it comes to institutional adoption.
That’s good news for Ripple’s position in the U.S. market but doesn’t automatically mean a rise in XRP’s price. The reason: using XRP for transaction fees within the network is, according to King, “marginal.”
Although XRP hit an all-time high in recent days thanks to the new law, XRP remains largely out of the crosshairs legally. The GENIUS Act primarily targets stablecoins, not utility tokens like XRP. For a clear legal qualification of XRP, we must wait for another law: the yet-to-be-discussed CLARITY Act.
