- XRP faces ongoing legal uncertainty, limiting its price impact despite the GENIUS Act supporting Ripple’s RLUSD stablecoin.
- The new law helps stablecoins but does not significantly affect XRP’s value.
The recent signing of the GENIUS Act by President Trump has brought important changes to the U.S. crypto market. This law offers a clear regulatory path for stablecoins like Ripple’s upcoming RLUSD. However, experts say it will have little direct effect on the price of XRP, Ripple’s main cryptocurrency.
Ripple’s RLUSD Gains a Competitive Edge
With the GENIUS Act, stablecoins such as RLUSD now have a stronger chance to compete in the U.S. market against established players like USDC and PayPal USD. Ripple’s RLUSD could become a key native liquidity provider in the country. This positions Ripple to strengthen its role as an infrastructure provider in the U.S. financial system.
Austin King, co-founder of Omni Network, explains that Ripple is in a good position to benefit. Yuri Brisov of Digital & Analogue Partners adds that RLUSD will allow Ripple to “reconfigure itself” within the U.S. market.
Limited Impact on XRP Price
Although every RLUSD transaction burns a small amount of XRP to cover network fees, this amount is very small compared to XRP’s total supply of over 59 billion coins. So far, only about 14 million XRP have been burned since the XRP Ledger started.
Ripple CTO David Schwartz has said that burned XRP will not significantly reduce supply anytime soon. As a result, the GENIUS Act is unlikely to cause a big change in XRP’s price.
Brisov also says Ripple can reduce its reliance on XRP where regulatory uncertainty remains, using RLUSD instead. This helps Ripple balance risks without giving up its core technology.
Regulatory Clarity Still Needed
The legal status of XRP’s remains uncertain due to ongoing SEC litigation. XRP is not considered a security when sold on exchanges but might be seen as one during institutional sales. This legal ambiguity affects how XRP can be used.
The proposed CLARITY Act could change this. If passed, it would create a clear legal framework to classify digital assets like XRP as commodities rather than securities. This would reduce uncertainty and open new opportunities for Ripple and XRP holders.
The GENIUS Act benefits Ripple’s stablecoin RLUSD and strengthens its position in the U.S. However, XRP’s investors should not expect immediate price gains. Full regulatory clarity may come later with new laws like the CLARITY Act. Until then, XRP’s future remains tied to ongoing legal and market developments.
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