tl;dr
The signing of the GENIUS Act provides stablecoin issuers like Ripple with a clear regulatory framework, though its impact on XRP's market price is expected to be minimal. Ripple's RLUSD aims to compete with stablecoins such as USDC and PayPal USD in the U.S. market, targeting institutional adoption...
America’s cryptocurrency landscape shifted notably with the signing of the GENIUS Act, offering stablecoin issuers like Ripple a defined regulatory framework. Despite this legislative milestone, its direct influence on XRP’s market price is expected to be minimal. Ripple’s introduction of RLUSD positions the company to rival established stablecoins such as USDC and PayPal USD within the U.S. market as a native liquidity provider.
Experts highlight that the GENIUS Act equips stablecoins like USDC and RLUSD with a competitive edge tailored toward institutional adoption, where substantial gains are anticipated. Ripple’s strong foothold in cross-border payments could facilitate RLUSD’s growth, enabling Ripple to transform into a core infrastructure player in the U.S. financial system. However, this potential expansion in market share is unlikely to produce significant XRP price increases, given the limited token burn impact relative to its vast circulation.
The ongoing SEC versus Ripple lawsuit maintains uncertainty over XRP's classification. While XRP is not considered a security once sold programmatically on exchanges, it might still be treated as such in institutional sales, leaving regulatory interpretation open. As a result, XRP will likely continue functioning primarily as a bridge token, with limited price effect from the GENIUS Act.
Importantly, the legislation allows Ripple to strategically reduce its dependence on XRP amid regulatory uncertainties by leveraging RLUSD, preserving its core technology. Future clarity may emerge if the CLARITY Act passes, potentially redefining digital asset classifications and expanding Ripple’s tokenization opportunities by removing ambiguity around XRP’s status.