New U.S. stablecoin rules could boost XRP adoption as Ripple's RLUSD gains regulatory clarity

The GENIUS Act, a suggested legal structure for stablecoins, establishes licensing, audits, and reserve mandates.

New U.S. stablecoin rules could open doors for wider XRP adoption as the token powers transactions on the XRP Ledger and Ripple’s RLUSD gains regulatory clarity, leading to greater institutional interest.

Hot Topics: U.S. Stablecoin Bill Spurs Interest in XRP and RLUSD Among Institutions

In a post shared by SMQKE, an XRP researcher, they explained how new U.S. stablecoin regulations could impact the use of XRP and RLUSD.

The GENIUS Act, a suggested legal structure for stablecoins, introduces licensing, regular audits, and reserve mandates for stablecoins over $10 billion in market value.

According to Tipranks, this may render RLUSD a more appealing choice for financial institutions and investors due to increased credibility.

The Act aims to establish clear definitions and guidelines for stablecoins, setting standards that they must meet.

Industry experts say this could bolster investor confidence in regulated digital assets, with rules governing reserve backing, minimum capital requirements for stablecoin issuers, and anti-money laundering (AML) /know-your-customer (KYC) protocols.

This framework is expected to benefit Ripple’s stablecoin offering, known as RLUSD.

Additionally, analysts suggest that the XRP Ledger could get more transactions if increased regulatory clarity could encourage institutional adoption of crypto.

However, as more people begin to use RLUSD, demand for XRP may increase as it plays a part in processing transactions on the network.

Each RLUSD transaction on the XRP Ledger involves a minimal fee settled in XRP, and these charges are eliminated, decreasing the total XRP supply.

According to Coinshares, certain experts believe that if RLUSD becomes widely adopted, then this could result in a gradual rise in XRP’s value over time.

According to supporters, RLUSD’s use case extends beyond local payments, facilitating international transactions and remittances.

As XRP acts as a bridge asset for these transactions, the token’s demand could increase as additional financial institutions integrate RLUSD into their activities.

Legal Clarity For XRP

The GENIUS Act could also help reinforce XRP’s regulatory standing.

While XRP itself is not a stablecoin, operating within a regulated environment may further support its classification as a utility token rather than a security.

This distinction is crucial for institutional investors and businesses using XRP for payments and liquidity solutions.

According to SMQKE, a well-defined regulatory framework could provide “greater certainty” for those seeking to engage with XRP and RLUSD in accordance with U.S. laws.

Moreover, Ripple has already secured over 50 Money Transmitter Licenses (MTLs) across the U.S., including in stringent financial states like Texas and New York.

These licenses enable Ripple to offer legal cross-border payment services that support XRP and RLUSD transactions.

Although the GENIUS Act targets stablecoins over $10 billion in market value, placing RLUSD out of reach at present, it can partner with state-level regulation as an alternative to federal regulation.

According to FinTech Mag, this gives Ripple a competitive edge over rival stablecoin projects in the market.

With regulatory approvals in hand and a clear legal path forward, the industry believes that XRP and RLUSD have now reached a point where adoption from financial institutions will increase.

The full impact of the new stablecoin guidelines will be determined by the introduction of a regulatory structure over the forthcoming months.