GENIUS Act and Its Impact on XRP: Stabilizing Ripple, But Not a Price Boost
President Donald Trump’s signing of the GENIUS Act marks a significant step forward in establishing a clear regulatory framework for the stablecoin market in the United States. For Ripple, the company behind XRP, this is an important moment, especially since they have just launched the stablecoin RLUSD. However, according to experts, the direct impact of this act on XRP itself is quite limited, at least in the short term.
RLUSD Rises, Ripple Strengthens Its Position
With the GENIUS Act, stablecoin issuers in the United States now have a clear regulatory framework to operate. This gives Ripple, which is looking to expand its role as a cross-border liquidity provider, more leverage to compete in the domestic market with rivals such as USDC (Circle) or PayPal USD.
RLUSD, designed to work in conjunction with the XRP Ledger, is part of Ripple’s strategy to expand its financial ecosystem. According to analysts such as Yuri Brisov (Digital & Analogue Partners), this stablecoin could help Ripple become a core financial infrastructure provider in the US, an important step in the context of increasingly fierce competition for liquidity and trust.
However, RLUSD is still an addition to Ripple’s ecosystem rather than a major factor affecting the value of XRP. The fact that each RLUSD transaction uses a small amount of XRP to pay network fees is not large enough to significantly affect the supply or price of this coin. Clearly, since its inception, XRP Ledger has only burned about 14 million XRP, a very small number compared to the total supply of more than 59 billion XRP in circulation.
Legal Issues Remain Major Stumbling Block for XRP
While Ripple benefits from the GENIUS Act by strengthening the status of its stablecoin RLUSD, XRP’s story is still affected by unresolved legal disputes. The long-running lawsuit between Ripple and the US Securities and Exchange Commission (SEC) continues to create ambiguity in the classification of XRP as a security or commodity.
Currently, some rulings have held that XRP is not a security when traded on exchanges, but can be considered a security when distributed in an institutional form. This creates a gray area that makes institutional investors cautious, and XRP is therefore unable to fully take advantage of the new legal or technical incentives for sustainable growth.
The CLARITY Act: The Key to XRP’s Path?
Experts believe that a strong positive impact on XRP can only appear if the CLARITY Act or another legislative proposal is passed in the future. The bill promises to establish a mechanism for digital assets to transition from “security” status to “commodity” status if certain criteria are met.
If CLARITY is signed into law, XRP could have the opportunity to “clean up” its current legal image, paving the way for the official participation of investment institutions, while increasing the coin’s credibility in the eyes of the traditional financial community.
XRP Price: Growth but not thanks to GENIUS
Meanwhile, the market is still witnessing a strong recovery of XRP in July 2025, with the price reaching a new historical high of $3.41 – breaking the record from 2018. However, the main driver of this price increase comes from the general altcoin wave, led by Ethereum and Solana, rather than directly from policy changes related to RLUSD or the GENIUS Act.
Analysts say investors are still looking at a broader scenario: if the altcoin market continues to grow, and new regulatory policies gradually stabilize, XRP could benefit indirectly. However, until the legal status of this coin is clearly resolved, truly sustainable leaps will remain limited.
Conclusion
The GENIUS Act is a positive step forward for the stablecoin market in the US and brings significant expansion opportunities for Ripple with its RLUSD product. However, the impact of this act on XRP price is quite vague in the short term, due to limitations on the token burning mechanism and prolonged legal uncertainty.
Only when the CLARITY Act is passed or Ripple receives a final favorable legal ruling will XRP be able to take full advantage of the potential of the regulatory reforms to break out in a more sustainable and stable way in the market.