As the GENIUS Act advances out of the Senate, discussions intensify about how this landmark stablecoin legislation could benefit Ripple, XRP, and the company’s RLUSD stablecoin.
Earlier this week, the U.S. Senate passed the GENIUS Act in a bipartisan vote. The move establishes a comprehensive federal framework to regulate U.S. dollar–denominated stablecoins.
The legislation encourages digital payment innovation by providing regulatory clarity for major stablecoin issuers such as Ripple, Circle, and Tether. Moreover, the Act aims to modernize domestic and international payment systems and reinforce the global dominance of the U.S. dollar.
Ripple Offering RLUSD Payments to U.S. Financial Firms
Notably, Ripple entered the stablecoin market in 2024 with the launch of RLUSD, which has quickly grown to a market cap of $415 million. This move has positioned Ripple as a major player in the regulated digital finance sector.
State-level approvals in New York and Texas have further paved the way for Ripple to offer compliant cross-border payment services to U.S. financial institutions using XRP and RLUSD.
A June 19 post on X by XRP community researcher “SMQKED” highlighted Ripple’s state-level regulatory green lights. The company holds over 50 money transmitter licenses (MTLs) across various states. These licenses legally enable Ripple to offer cross-border payment services to U.S. financial institutions using XRP and RLUSD.
The recently passed GENIUS Act now complements Ripple’s broader mission in the financial market.
‼️RIPPLE IS LEGALLY ALLOWED TO OFFER CROSS-BORDER PAYMENT SERVICES TO U.S. FINANCIAL INSTITUTIONS USING RLUSD AND XRP‼️
Documented.📝💨 https://t.co/bxNKD2B4GP pic.twitter.com/0XZPqK8gIH
— SMQKE (@SMQKEDQG) June 19, 2025
More Details on How the GENIUS Act Benefits Ripple, RLUSD, and XRP
XRP community pundits have expressed various hypotheses about how the GENIUS Act could boost institutional adoption of Ripple’s RLUSD and solidify XRP’s status as a regulated utility token.
In a post on X, SMQKED explained that RLUSD meets the key requirements of the incoming stablecoin regulation, including transparent reserves and regular audits. RLUSD is backed 1:1 by USD deposits and short-term government bonds, with monthly third-party attestations ensuring transparency.
The commentator argued that as RLUSD gains institutional traction, demand for XRP will rise. Since XRP is used for transaction fees on the XRP Ledger—where RLUSD operates—these fees are burned, potentially reducing XRP’s supply.
SMQKED also suggested that the GENIUS Act better positions RLUSD and XRP to compete with central bank digital currencies (CBDCs) under a clear regulatory framework.
Interestingly, some ambitious XRP advocates, like Chad Steingraber, believe the GENIUS stablecoin bill could be the catalyst that propels XRP to his long-held $250 price target.
At the moment, the bill has now moved to the House of Representatives for further review. President Donald Trump has urged them to pass it without delay to secure U.S. leadership in the space.
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