The recently enacted GENIUS Act could drive new growth in RLUSD adoption and enhance usage of the XRP Ledger, according to cryptocurrency researcher SMQKE. The claim centers on legislative changes to stablecoin regulation in the United States and the resulting impact on both RLUSD and XRP transaction activity.
SMQKE connects GENIUS Act to RLUSD adoption
SMQKE released a document on social platform X outlining how the GENIUS Act may affect the position of RLUSD and XRP in the stablecoin market. The legislation establishes standards for stablecoin reserves, licensing, and interoperability, aiming to increase oversight for payment-focused stablecoins used in financial markets.
President Donald Trump signed the GENIUS Act into law on July 18, 2025. The US Treasury Department stated that the act creates a federal regulatory structure for stablecoin issuers operating within the country.
The researcher’s analysis suggests the act’s compliance requirements could bolster financial institutions’ trust in RLUSD, a stablecoin issued by Ripple. The document claims that with improved transparency, RLUSD could attract more adoption from banks and payment companies seeking regulated stablecoin options.
Ripple, a US-based blockchain company known for cross-border payments technology, currently issues RLUSD on both the XRP Ledger and Ethereum. Ripple has emphasized that each RLUSD token is fully backed by a reserve comprised of cash, cash equivalents, and other approved assets.
Mini dictionary: RLUSD, a stablecoin developed and issued by Ripple, maintains a fixed value of one US dollar and is supported by various reserves. RLUSD is available on the XRP Ledger, Ethereum, and potentially other networks, targeting use cases in payments and settlements.
“Yes, the GENIUS Act will amplify XRP’s use case. This is documented below.”
RLUSD transactions use XRP for fees
The document further links the expected growth in RLUSD adoption to demand for XRP within the XRP Ledger ecosystem. On XRPL, every transaction requires users to destroy a small amount of XRP as a network fee. The base transaction cost is currently set at 10 drops, but it can rise during periods of high congestion. Burned XRP is permanently removed from the overall supply, rather than distributed to validators or other parties.
| Transaction Type | Fee (in XRP) | Fee Recipient |
|---|---|---|
| Standard XRPL transaction | 10 drops minimum | Permanently destroyed |
| Increased XRPL demand | Variable, higher during congestion | Permanently destroyed |
SMQKE argued that as more RLUSD transactions occur on the XRP Ledger, they could lead to additional XRP being burned as transaction fees. The researcher noted this effect would be most pronounced if RLUSD becomes widely used for cross-border payments or daily transactions.
However, a respondent identified as TipTopJester questioned the scale of this impact, pointing out that each RLUSD transaction only consumes a minor amount of XRP. The commenter acknowledged regulatory support from the GENIUS Act could foster RLUSD’s competitiveness but maintained that the magnitude of XRP burned relative to total circulating supply would be limited.
SMQKE’s analysis draws attention to regulatory clarity, stablecoin compliance, and the possible ripple effect on XRP transaction volumes, but the ultimate scale of these impacts remains uncertain.
The XRP and RLUSD distinction
Industry observers continue to distinguish between XRP, the native asset of the XRP Ledger, and RLUSD, which is issued as a dollar-backed stablecoin for transactional use. Ripple documentation explains that while XRP enables decentralized value transfers and acts as the ledger’s core asset, RLUSD is designed for payments and settlements with one-to-one dollar parity.
SMQKE’s position highlights that any uptick in stablecoin adoption—particularly for RLUSD—resulting from regulatory reform could generate more XRP fee burns via transaction activity. While the researcher portrays potential technical and market synergies, they stop short of projecting any specific levels of increased XRP demand.
Current analyses reflect that additional regulatory clarity is generally viewed as supportive for both stablecoin adoption and related payment networks, but market participants await observable data to gauge the full scope of the GENIUS Act’s effects on the broader ecosystem.
