XRP News: New US Stablecoin Rules Could Skyrocket XRP Adoption, Here’s How

 New U.S. stablecoin rules could boost XRP adoption as Ripple’s RLUSD gains regulatory clarity, increasing institutional interest and transactions on the XRP Ledger.

New U.S. stablecoin regulations may open doors for wider XRP adoption. XRP researcher SMQKE explained how these changes could boost RLUSD’s use and increase demand for XRP.

The GENIUS Act, a suggested legal structure for stablecoins, establishes licensing, audits, and reserve mandates. As per analysts, this may bolster RLUSD’s credibility, rendering it a more appealing choice for financial institutions and investors.

Regulatory Framework Strengthens RLUSD’s Position

The GENIUS Act intends to establish clear definitions for stablecoins, by setting out the standards that they must meet. Industry experts say this could bolster investor confidence in regulated digital assets, with rules governing reserve backing, licensing, and compliance.

This framework is expected to bring a benefit to Ripple’s RLUSD stablecoin. Additionally, analysts suggest that the XRP Ledger could get more transactions if increased regulatory clarity could encourage institutional adoption. However, as more people begin to use RLUSD, demand for XRP may increase as it plays a part in processing transactions on the network.

XRP’s Role in RLUSD Transactions

Each RLUSD transaction on the XRP Ledger involves a minimal fee settled in XRP. These charges are eliminated, decreasing the total XRP supply. Certain experts think that if RLUSD becomes widely adopted, this could result in a gradual rise in XRP’s value as time passes.

Supporters claim that RLUSD’s usefulness might go beyond local payments, facilitating international transactions and remittances. As XRP acts as a bridge asset for these transactions, the need for the token could increase as additional financial institutions incorporate RLUSD into their activities.

Legal Clarity for XRP Under New Regulations

The GENIUS Act could also play a role in reinforcing 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 essential for institutional investors and businesses using XRP for payments. According to SMQKE, a well-defined regulatory framework could provide “greater certainty” for those looking to engage with XRP and RLUSD in compliance with U.S. laws.

Ripple’s Expanding Regulatory Approvals

Ripple has won over 50 Money Transmitter Licenses (MTLs) across the U.S., including these stringent financial states like Texas and New York. These licenses enable Ripple to offer legally cross-border payment services that support XRP and RLUSD transactions.

https://twitter.com/SMQKEDQG/status/1894871995994570848

Even though the GENIUS Act applies to stablecoins over $10 billion in market value, RLUSD is currently at a level less than this. Because of this, it can partner with state-level regulation as an alternative to federal regulation. Analysts suggest this gives Ripple a competitive advantage 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. After all, the complete impact of the new stablecoin guidelines will be determined by the introduction of a regulatory structure over the forthcoming months.