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5 Things to Know as the GENIUS Act Becomes Law

UNITED STATES, JUL 21 – The GENIUS Act establishes a federal framework for dollar-backed stablecoins, enabling Ripple's RLUSD to expand amid ongoing regulatory uncertainty over its XRP token's classification.

  • On Friday, President Donald Trump signed the 'Guiding and Enabling the Nationwide Innovation of US Stablecoins' Act into law, marking the first stablecoin-focused legislation and establishing a federal framework for stablecoins.
  • Amid ongoing legal uncertainty for XRP, Ripple plans to leverage the GENIUS Act’s clarity to reduce regulatory exposure for its RLUSD stablecoin, which operates under the Act’s reserve and audit requirements.
  • In Ripple’s dual-token model, RLUSD holds 1:1 reserves in dollars and U.S. Treasuries with 36 months for full compliance under the Act, while XRP continues to serve as a bridge token on the XRP Ledger.
  • Following the Act, RLUSD stands to gain institutional traction as a regulated stablecoin under the GENIUS Act, while XRP’s price is unlikely to see meaningful movement, even as XRP remains a top token by market capitalization.
  • Future legislation, such as the CLARITY Act, could further clarify XRP’s legal status in the U.S., while RLUSD may expand under its regulatory footing, reshaping Ripple’s dual-token strategy.
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The US is creating a regulatory framework for stablecoins for the first time to secure the leadership role of the US dollar. Despite MiCAR, the EU lacks political will to support stablecoins.

·Frankfurt, Germany
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Coindoo broke the news in on Monday, July 21, 2025.
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