The enactment of the GENIUS Act has raised significant responses in the digital asset sector, especially RLUSD and XRP. The law lays the foundation for a controlled regime of stablecoin, which has already triggered changes in institutional posturing and the application of digital assets in the US.
According to the new law, the USD-collateralized tokens, including RLUSD, will be required to adhere to stringent reserve management, periodic inspections, and licensing requirements. The above measures are now setting RLUSD on the road to wider institutional acceptance in a bid to improve transparency and trust. According to SMQKE (@SMQKEDQG), a well-regarded crypto researcher, RLUSD is on track to meet these standards, signaling increased credibility in financial circles.
The scope of the law also covers stablecoins. The XRP Ledger that RLUSD uses requires a tiny amount of XRP to be burnt every time a transaction is made. With more RLUSD activity, this mechanism may propel the demand for XRP. The record, published by SMQKE, corroborates the fact that the implementation of RLUSD can only have a direct impact on the market value and transactional relevance on XRP.
Furthermore, the fact that XRP found its place in the regulated environment has the potential to enhance its positioning in the wider financial system. XRP, although not a stablecoin, would be able to enjoy the methodical supervision introduced with the GENIUS Act. The policy document emphasizes that the clarity of such regulation can be beneficial in defining XRP as a genuine utility token.
Policy Mechanism Could Position XRP Against CBDCs
The document pays particular attention to the fact that the GENIUS Act has the potential to create a level playing field between decentralized assets and central bank digital currencies. Now, with clearly regulated RLUSD, it might as well become the realistic substitute for VO state-backed CBDCs. SMQKE had earlier provided insight on how RLUSD can be used as a synthetic CBDC and further bring in the integration of XRP as a liquidity bridge asset.
Since every RLUSD transaction will stimulate XRPL activity, the change may also find an application to increase the use of XRP in cross-border payments. The GENIUS Act assists with this transition because it provides a legal channel to support stablecoin and other digital assets that are existing and maneuvering within the US financial landscape.
Another extension of this shift can be seen in the ongoing opposition of President Donald Trump to the implementation of CBDCs. The orientation of his administration enables such alternative tokens as RLUSD and XRP to develop an institutional following without the imminent introduction of state-issued digital currencies.
This judicial support is associated with the increased presence of Ripple in the field of real-time settlements, especially remittances and cross-border markets. Besides establishing a precedent with regard to the classification of future digital assets, the GENIUS Act also opens a more straightforward way to adoption.
Conclusion
The GENIUS Act marks a strategic moment for RLUSD and XRP, offering a rare blend of regulatory structure and market opportunity. As institutions reassess their digital asset strategies, both assets appear well-positioned for the next phase of adoption and utility expansion within the United States.
Also Read: RLUSD: Ripple’s New Stablecoin Could Be the Biggest Threat to XRP
