GENIUS Act: Catalyst for XRP & RLUSD Dominance?
GENIUS Act: Ushering in a New Era for RLUSD and XRP?
Following the enactment of the GENIUS Act, Black Swan Capitalist co-founder Versan Aljarrah anticipates RLUSD becoming the U.S. Treasury's preferred instrument for globalizing the digital dollar. Aljarrah suggests that RLUSD and XRP are poised to surpass Tether’s USDT, driven by the XRP Ledger's expanding utility in finance.
RLUSD and XRP Primed for Growth Under GENIUS Act
According to an X post, Versan Aljarrah foresees significant shifts in the stablecoin market due to the GENIUS Act. He believes this regulation could allow the U.S. Treasury to leverage Ripple’s RLUSD to promote a digital dollar, reinforcing the greenback’s status as the global reserve currency.
Aljarrah emphasizes RLUSD’s compliance with the GENIUS Act, noting its full backing by U.S. dollars, Treasury bills, and other cash equivalents.
Beyond regulatory compliance, Aljarrah highlights the XRP Ledger's pivotal role in RLUSD’s potential dominance, citing its liquidity layer as a neutral settlement layer vital for global commerce.
“By tokenizing U.S. debt and integrating it with XRP’s liquidity layer, RLUSD can enable real-time, cross-border settlements,” said Aljarrah. “This is how value moves globally in a post-SWIFT world.”
President Trump’s signing of the GENIUS Act introduces robust stablecoin regulation in the U.S.
Tether's USDT Facing Challenges
Aljarrah predicts a decline in Tether's stablecoin market leadership as the GENIUS Act increases scrutiny and regulatory pressure on unregulated stablecoin issuers.
He anticipates capital flowing from unregulated assets to compliant stablecoins like Ripple’s RLUSD. Currently, Tether leads with a $161 billion market cap, while RLUSD stands at $527 million. In response to the GENIUS Act, Tether announced plans to launch a U.S.-based stablecoin to gain regulatory clarity.
“The offshore game is over,” said Aljarrah. “Tether’s days as a shadow bank and liquidity provider are numbered.”
Aljarrah also points to XRP’s potential to support a gold-backed stablecoin, suggesting that the next step post-GENIUS Act could be launching a gold-backed Treasury token to “redefine trust in digital assets.” XRP has hit an ATH and currently trades at $3.43 as Ripple continues to mint new RLUSD tokens.
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