Ripple has resumed the minting mechanism for its stablecoin RLUSD, issuing 12 million new tokens. This move follows a hiatus from minting that began in April.
Reactivation of RLUSD Minting
After pausing since April, during which the company aimed to stabilize supply and calibrate it with market demand, Ripple has restarted its token issuance. The last minting occurred on April 25, when the company released two tranches totaling 23 million tokens. Currently, there are approximately 425.74 million RLUSD tokens in circulation, according to CoinMarket cap.
Impact of the GENIUS Act on Stablecoin Market
This minting occurred just before the U.S. Senate's vote on the GENIUS Act, scheduled for June 17. This bill proposes the establishment of a federal regulatory framework for stablecoins, which could clarify rules for companies like Ripple. If passed, the bill will move to the House of Representatives and may eventually become law.
Supporters argue that the bill could encourage more stablecoin issuances, increasing their availability in the market.
Experts' Views on the Future of Stablecoins
Some experts, such as crypto analyst Nic Puckrin, believe the GENIUS Act will create opportunities for banks and other entities to issue their own stablecoins, thereby expanding consumer choice. Puckrin stated, "Since the bill will create a clear pathway for banks and other entities to begin issuing stablecoins, we will likely see a flood of them rush into the market at the start."
However, opponents of the bill argue it threatens the decentralized nature of cryptocurrencies and may lead to corruption. These discussions highlight the importance of a balanced approach to stablecoin regulation.
The resumption of RLUSD minting ahead of the GENIUS Act vote highlights Ripple's strategic approach to enhancing the liquidity of its stablecoin. The anticipated regulation could potentially alter the market dynamics, encouraging more companies to participate in this segment.
