President Donald Trump made a major turn in the US code landscape last Friday signature Geniuses act in the law. The law provides regulated paths for Stablecoin publishers like Ripple, but some say it has minimal impact on XRP in at least meaningful ways.
“Ripple is uniquely positioned to benefit from this new law,” said Austin King, co-founder of Omni Network. Decryption. The law “is where USDC and RLUSD give a competitive advantage when it comes to institutional adoption and where actual winners are created,” he added.
Competitors like Circle’s USDC and Tether’s USDT will undoubtedly push to maintain market share, but Ripple’s established cross-border positioning will help you gain RLUSD traction.
“The presence of RLUSD allows Ripple to become a US land liquidity provider and compete directly with USDC and PayPal USD,” said Yuri Brisov, partner at Digital & Analogue Partners. Decryption. This, he explained, allows Ripple to “reconfigure itself as a core infrastructure provider within the US financial system.”
However, it is unlikely that an increase in market share at Stablecoin Arena will translate into a major price movement for XRP itself. Decryption I was told.
All RLUSD transactions burn a small amount of XRP to cover network charges, but this volume pales in comparison to XRP’s 59.1 billion coins.
For example, the XRP ledger has cumulatively burned 14 million tokens since its inception. Ripple CTO David Schwartz has eased expectations in the past, Statement“I don’t think we’ll burn XRP and cut supply significantly anytime soon.”
The SEC vs. Ripple lawsuit continues to overshadow XRP classifications, with security statuses still split.
XRP is not considered security when sold programmatically on exchanges, but according to Brissov, “it could constitute security in the arrangement of the system.”
He said the distinction “relies on the context of sales and leaves future classifications vulnerable to interpretation.”
As a result, XRP is likely likely to continue to function as a bridge token, with the direct impact from the genius law on prices being minimal, Brissoff said.
Brisov said the legislation allows the use of RLUSD to “strategically reduce reliance on XRP” where regulatory uncertainty persists, particularly in the context of sales. “This allows Ripple to recalibrate exposure without abandoning its core technology stack.”
According to Brissov, if digital assets are adopted to propose a formal path to the transition from securities to goods, brings clarity to XRP, if the upcoming Clarity Act is adopted.
It could “eliminate ambiguity” and “potentially open the door to a ‘broader tokenization strategy for ripples’,” he said.