GENIUS Act Paves Way for XRP Utility Boost

Crypto researcher SMQKE believes that the proposed GENIUS Act could have significant implications for XRP's long-term utility. The act aims to establish reserve requirements, licensing frameworks, and interoperability standards for stablecoin issuers in the United States.

The legislation seeks to integrate stablecoins like RLUSD into mainstream finance while reducing systemic risks. According to SMQKE, regulatory clarity could be positive for XRP because RLUSD transactions require XRP to pay network fees. The researcher highlighted that growing RLUSD usage could gradually reduce XRP's circulating supply.

The document shared by SMQKE notes that RLUSD transactions already account for more than 95% of stablecoin activity on the XRP Ledger. Transaction fees are paid in XRP and permanently burned, which suggests that increased RLUSD adoption may strengthen XRP's role within the network's transaction process.

The GENIUS Act implementation could amplify XRP's utility, according to SMQKE. The researcher emphasized that regulatory clarity and increased RLUSD adoption may be beneficial for XRP's long-term prospects.