US Stablecoin Rules Could Boost Ripple’s RLUSD and XRP

XRP Utility Strengthened by RLUSD
1. Enhancing Legal Standing and Competing with CBDCs

Recent developments in U.S. stablecoin regulation could mark a turning point for Ripple’s digital asset strategy. The forthcoming GENIUS Act—mandating reserve requirements, audits, and licensing for stablecoins—promises much-needed regulatory clarity. This new framework is expected to boost confidence in Ripple’s USD stablecoin, RLUSD, by ensuring it meets stringent compliance standards. Experts believe that with enhanced credibility, RLUSD will attract more institutional interest and foster broader adoption across the XRP Ledger.

XRP Utility Strengthened by RLUSD

Every transaction involving RLUSD on the XRP Ledger incurs a small XRP-denominated fee that is burned, effectively reducing the total supply of XRP. As RLUSD becomes more popular, particularly for cross-border payments and remittances, this mechanism could significantly drive demand for XRP as a bridge asset. In turn, increased network activity and token scarcity could lead to an upward pressure on XRP’s market value, benefiting investors over the long term.

Enhancing Legal Standing and Competing with CBDCs

The GENIUS Act is also set to solidify XRP’s legal status by framing it as a utility token rather than a security. With only stablecoins with over $10 billion in market value subject to federal regulation, Ripple’s RLUSD—currently well under this threshold—could opt for state-level oversight. This flexibility not only bolsters XRP’s position in a regulated market but also positions it as a competitive alternative to potential Central Bank Digital Currencies (CBDCs). Recent U.S. policy moves emphasizing the importance of USD stablecoins further underscore the potential for RLUSD to promote the dollar’s global dominance.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

US Stablecoin RLUSD and XRP

US Stablecoin Rules Could Boost Ripple’s RLUSD and XRP

Sujit Kumar

Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.