GENIUS Act: Impact on Ripple and the Future of Crypto RLUSD

1. GENIUS Act – A Breakthrough for Ripple And New Stablecoin RLUSD

On July 21, 2025, the GENIUS Act was officially signed into law by President Donald Trump, paving the way for stablecoin issuers in the U.S., including Ripple. However, while this law gives Ripple a new direction with its stablecoin RLUSD, the direct impact on XRP's value is not very significant, at least in the short term.

2. Ripple And The Advantage Of RLUSD

According to Austin King, co-founder of Omni Network, Ripple can leverage the GENIUS Act to enhance its competitiveness in the stablecoin market against competitors like USDC and PayPal USD. "This new law gives stablecoins like USDC and RLUSD a competitive advantage in attracting institutional adoption, which is where the real wins will be made," he shared.

This is particularly important for Ripple, as RLUSD allows the company to become a domestic liquidity provider in the U.S., competing directly with other stablecoins. It is an opportunity for Ripple to restructure itself and emerge as a key infrastructure provider in the U.S. financial system.

3. XRP And The Limited Impact Of the GENIUS Act

Although Ripple may gain additional market share from RLUSD, XRP, Ripple's prominent cryptocurrency, will not see a significant impact from this new law. One important point to note is that each RLUSD transaction will "burn" a small amount of XRP to pay transaction fees, but the amount of XRP burned is negligible compared to the total supply of this coin, with over 59 billion XRP currently in circulation.

The Impact of the GENIUS Act on Ripple and the Future of Stablecoin RLUSD

For instance, since the launch of the XRP Ledger, only 14 million XRP has been burned, which is too small compared to the total 59.1 billion XRP on the market.

4. XRP And The SEC Lawsuit – A Looming Cloud

Although XRP remains one of the top cryptocurrencies by market capitalization, the ongoing lawsuit between Ripple and the SEC continues to be a significant concern. While XRP is not considered a security when traded on exchanges, its legal status in institutional transactions remains unclear and could change over time.

According to Yuri Brisov, a partner at Digital & Analogue Partners, whether XRP is classified as a security depends on the sales context, leaving its classification ambiguous.

5. XRP's Future Under The CLARITY Act

Brisov stated that if the CLARITY Act – a bill that could clearly define the transition of digital assets from securities to commodities – is passed, it could clarify XRP's status and open up new opportunities for Ripple to develop its tokenization strategy.

6. Conclusion: GENIUS Act And New Opportunities For Ripple

The GENIUS Act may not bring explosive growth to XRP, but it opens up a major strategic opportunity for Ripple with its stablecoin RLUSD. Although the direct impact on XRP is minimal in the short term, Ripple becoming a domestic liquidity provider could offer a competitive advantage in the stablecoin market.

With clearer regulatory conditions from the GENIUS Act and the ability to grow amid large competitors like USDC, Ripple could continue to strengthen its position in the cryptocurrency market.