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The GENIUS Act Passed: Document Reveals What It Means for RLUSD and XRP
In a landmark decision, the GENIUS Act has been passed, sparking excitement in the crypto world. A newly surfaced document provides insight into the far-reaching implications of this legislation, revealing its potential impact on RLUSD and XRP.
Initially designed to regulate USD-backed tokens like RLUSD, the GENIUS Act’s provisions could have a profound effect on XRP as well. According to sources, the law sets a precedent for digital asset classification and oversight, which may lead to XRP being recognized as a utility token in its own right. This development holds significant implications for institutional adoption, growth, and regulatory position within the U.S. financial system.
RLUSD Gains Credibility
Under the GENIUS Act, stablecoins must adhere to stringent reserve, audit, and licensing requirements. RLUSD is expected to meet these standards, thereby increasing its credibility and potentially driving increased institutional adoption.
This development could have far-reaching consequences for institutions evaluating which digital assets can be legally integrated into payment flows. It is essential to note that RLUSD’s integration with the XRP Ledger (XRPL) means every transaction involving the stablecoin includes a small XRP-denominated fee, which is then burned. This deflationary mechanism, combined with growing RLUSD activity, suggests rising XRP utility.
The document highlights the potential for “heightened demand for XRP” resulting from this increased adoption and integration. Moreover, RLUSD’s role in remittances and cross-border payments positions XRP as a bridge asset for liquidity provision, particularly in systems requiring real-time settlement and transparency.
Clarity in a Gray Area
This development holds significant implications for XRP’s regulatory position within the U.S. financial system. By recognizing XRP as a utility token, institutions may be more likely to integrate it into their payment processes.
Source: timestabloid.com
