A significant event has occurred in the cryptocurrency world today: the US Senate has officially passed the Genius Act, a bill concerning stablecoins, which may reshape the digital asset market in the country.
Key Highlights of the Bill
The Genius Act has been passed with a vote of 68-30 and will now move to the House, where it is expected to be approved quickly before heading to President Trump's desk for final approval. This law creates clear rules for companies like Circle's USDC and other dollar-backed digital assets.
Impact on XRP
With the new regulation, there are concerns that the rise of regulated stablecoins could reduce the demand for XRP in cross-border payments and liquidity solutions. However, according to an industry expert, this could also enhance XRP's utility by providing banks and businesses with more ways to transfer money while still requiring a bridge asset like XRP for certain markets and transactions.
Role of XRP as a Neutral Bridge
XRP plays a vital role as a neutral, decentralized bridge asset. Rather than being replaced, XRP could serve as the only neutral asset that banks can trust. This positions it as a key player in global value transfer. Stablecoins are designed to hold value, while XRP is designed to transfer it. For example, transferring money from Japan to Mexico using stablecoins can be complex, but with XRP, the transfer happens instantly without needing pre-funded accounts.
Despite the rising popularity of stablecoins and the regulatory clarity surrounding them, they will not replace XRP in its core functions of quickly and efficiently transferring value across borders.
