Recently, XRPL validator Vet shared an optimistic view on the potential impact of the newly signed GENIUS Act on RLUSD and the XRP Ledger.
Expert Commentary on the GENIUS Act
Vet pointed to remarks made by White House A.I. & Crypto Czar David Sacks, who stated that regulatory certainty for stablecoins could unlock trillions of dollars in demand for U.S. Treasuries. Vet noted: “With the signing of the Genius Act, we should see good growth for $RLUSD on the XRP Ledger. Trillions in potential demand for treasuries by stablecoin issuers, as per David Sacks, would also mean trillions in marketcap. Currently 1/4 Trillion stablecoin marketcap.”
Overview of the GENIUS Act
Vet's remarks came shortly after the U.S. government finalized the GENIUS Act. The U.S. House of Representatives passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) on July 17, 2025, with overwhelming bipartisan support. The Senate had already approved the bill in June, and President Donald Trump signed it into law on July 18. The GENIUS Act has been described as the most consequential piece of financial regulation since the Dodd-Frank Act of 2010. The law establishes a comprehensive, national regulatory framework specifically for U.S. dollar-backed stablecoins. Issuers are required to maintain full one-to-one dollar reserves, submit to monthly audits by third parties, and operate under ongoing regulatory oversight.
State of Affairs and Consumer Protection
While the GENIUS Act is already law, its provisions will not take full effect immediately. Regulators have up to 180 days to draft and publish implementing rules, with full enforcement of the law expected by the end of 2026. The Act also includes notable consumer protections. Stablecoin holders are given priority claims on reserves in the event of an issuer’s insolvency. Issuers are prohibited from paying interest on their coins; however, third-party platforms may still offer such features independently. These protections are designed to increase trust in regulated stablecoins, encouraging broader adoption by institutions and retail users.
Vet's remarks underscore the opportunities it creates for RLUSD and the XRP Ledger. While implementation details and timing remain to be clarified, the law sets the stage for expanded regulated use of stablecoins.
