GENIUS Act signed, Ripple adjusts strategy

The GENIUS Act provides stablecoin clarity but may not significantly affect XRP.

Impact of the GENIUS Act on Ripple and XRP

Last Friday, President Donald Trump signed the GENIUS Act into law, creating a clearer regulatory framework for stablecoin issuers like Ripple. The new legislation positions Ripple's RLUSD stablecoin to compete with established players such as USDC and PayPal USD. However, experts suggest that this will have a minimal direct impact on the price of XRP itself. Attorney Austin King noted that while Ripple is well-positioned under this new law, XRP's prospects remain limited as anticipated market movements may not translate into significant price changes. Legal uncertainty around XRP's classification continues due to the ongoing SEC lawsuit, which adds complexity to its future market potential.

The GENIUS Act represents a crucial step for Ripple, allowing it to reinforce its role in the evolving cryptocurrency landscape. However, the excitement surrounding the legislation is somewhat tempered by the persistent ambiguity over XRP's classification in the eyes of the SEC. As Ripple focuses on developing RLUSD as a competitive stablecoin, it simultaneously seeks to reduce reliance on XRP amidst regulatory concerns. Without clarity from the upcoming CLARITY Act, XRP may remain in a state of limbo, impacting investor sentiment and long-term price stability.

Highlights

Ripple's future trajectories will depend heavily on regulatory developments and market adaptations.