The recent passage of the GENIUS Act in the U.S. has sparked discussions about its potential impact on the stablecoin market and cryptocurrencies, specifically RLUSD and XRP.
Institutional Legitimacy for RLUSD
The law requires stablecoins to comply with strict reserve, audit, and licensing standards. RLUSD is expected to meet these requirements, potentially increasing its attractiveness to institutional investors.
Expansion of XRP’s Use Case
Transactions involving RLUSD occur on the XRP Ledger, leading to heightened XRP utility through the burning of small fees. This may drive increased demand for XRP and enhance its role in transactions.
Clarity in a Gray Area
Although XRP is not a stablecoin, its integration within a regulated framework under the GENIUS Act may influence its classification and improve the understanding of its role as a utility token.
The GENIUS Act could serve as a pivotal moment for the growth and institutional adoption of RLUSD and XRP in the financial market.
