Not all crypto currency may be riding a high after the GENIUS Act was passed into law. While this legislation provides a regulated path for stablecoin issuers like Ripple, some say it has a minimal impact on XRP, at least in any meaningful way.
“Ripple is uniquely positioned to benefit from this new legislation,” Austin King, co-founder of Omni Network, told Decrypt. The law gives stablecoins like “USDC and RLUSD a competitive advantage when it comes to institutional adoption, which is where the real winners will be made,” he added.
XRP is a digital currency developed by Ripple Labs, designed to facilitate fast and low-cost cross-border payments. Unlike many cryptocurrencies, XRP doesn’t rely on traditional mining; instead, it uses a consensus ledger maintained by a network of validators, making transactions efficient and environmentally friendly.
READ: US Senate approves GENIUS Act: What it means for crypto (June 18, 2025)
XRP serves as a bridge currency in Ripple’s payment protocol, helping financial institutions settle international transactions in real time. Its key strengths are scalability, speed (processing around 1,500 transactions per second), and low transaction fees. While XRP can be used by individuals, its primary target market is banks and payment providers seeking to modernize global money transfers.
XRP has faced legal scrutiny, particularly a lawsuit from the U.S. Securities and Exchange Commission (SEC), which argues it was sold as an unregistered security. Despite legal challenges, XRP remains one of the top cryptocurrencies by market capitalization and plays a significant role in blockchain-based financial infrastructure.
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) is a bipartisan legislative effort introduced in 2025 to create a clear regulatory framework for stablecoins—digital assets pegged to the value of traditional currencies like the U.S. dollar.
On July 18, President Donald Trump signed the GENIUS Act in law “to lead the global digital currency revolution.” Aimed to strengthen the U.S. dollar reserve, protect consumers and further national security, the Trump administration is sticking to its agenda of making the United States the “crypto capital” of the world.
While Ripple created XRP, the XRP Ledger operates independently as an open-source blockchain. Ripple uses XRP to help financial institutions settle international payments quickly and efficiently. The company holds a significant portion of XRP, much of it in escrow. Although XRP is often associated with Ripple, they are distinct: Ripple is the company, and XRP is the native digital token.
READ: Senate advances GENIUS Act to regulate stablecoins amid bipartisan support (May 22, 2025)
“The existence of RLUSD would allow Ripple to become a native, on-shore liquidity provider in the U.S., competing directly with USDC and PayPal USD,” Yuri Brisov, Partner at Digital & Analogue Partners, told Decrypt. This, he explained, will allow Ripple to “reconfigure itself as a core infrastructure provider within the U.S. financial system.”
The evolving relationship between Ripple and XRP highlights a broader maturation in the cryptocurrency and blockchain space. As legal clarity continues to improve, particularly following regulatory developments like Ripple’s partial settlement with the SEC, XRP stands to benefit from increased institutional adoption and legitimacy. If Ripple continues to expand its network and XRP gains traction as a liquidity bridge, the token could play a central role in reshaping global finance infrastructure.
For the broader crypto market, XRP’s trajectory signals a move away from speculative hype toward real-world utility. More projects are now focusing on solving practical problems—such as settlement delays, transparency, and inefficiencies in global finance—rather than merely acting as digital assets. Regulatory clarity, interoperability, and institutional trust are becoming key drivers of long-term value.