XRP Poised for Takeoff After GENIUS Act Boosts RLUSD Legitimacy

The GENIUS Act has introduced strict regulations for USD-backed stablecoins, bringing a new wave of clarity to the crypto market. RLUSD, a stablecoin on the XRP Ledger, has emerged as a major beneficiary of this legislation.

According to crypto analyst SMQKE, RLUSD’s compliance with the Act has significantly increased its appeal to institutional investors. Stablecoin is expected to meet requirements for reserve backing, audits, and licensing.

Financial institutions are attracting their attention to these standards as they need a legal framework before adopting digital assets. With the increased activity of RLUSD, XRP currently acquires utility since it is used to process transactions on the ledger.

All RLUSD coins on the XRP Ledger have a minute cost charged in XRP. The fee burn causes deflation, which increases the demand for XRP.

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It is confirmed in the policy document shared by SMQKE that RLUSD adoption could result in the usage of XRP. This, in the opinion of analysts, could position XRP in a better position in the regulating environment in the U.S.

Although XRP is not a stablecoin, its stay-linked nature with RLUSD suggests a connection to the regulated digital finance arena. Such a connection might shed some light on how XRP could be defined as a utility token.

Additionally, XRP serves as a bridge asset for liquidity in remittance and cross-border payment systems. RLUSD’s use in real-time settlements increases the need for XRP in institutional-grade transactions.

Regulatory Clarity Pushes XRP Closer to Institutional Integration

The GENIUS Act has changed how digital assets are treated in the U.S. by creating a path for stablecoin compliance. RLUSD’s alignment with this law gives XRP a platform for deeper integration into financial infrastructure.

With Donald Trump’s administration opposing CBDCs, private assets are stepping in to fill that role. Based on documents recently introduced by SMQKE, RLUSD could replace the CBDC with a synthetic CBDC and support only the settlement layer with XRP.

This arrangement places XRP at the center of controlled money transfers, with its relevance expected to grow as more institutions implement RLUSD across financial platforms.

The movement inspired by the GENIUS Act is already altering the mentality of markets. The XRP is now upstream to better utility and wider recognition in the American economy.

By meeting the requirements outlined in the GENIUS Act, RLUSD has gained recognition as a compliant stablecoin with an expanded use case. As a result, XRP is set to benefit from its deeper role in powering secure and regulated digital finance systems.

Also Read: Ripple CTO Reveals Why Stablecoins Could Actually Boost XRP’s Global Role

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