The Office of the Comptroller of the Currency (OCC), a leading US federal banking regulator, finalized its rules implementing the GENIUS Act on October 21. This move marks the OCC as the first regulator to officially complete the framework for stablecoins since Congress passed the GENIUS Act in July 2025.
SMQKE highlights XRP benefits
Cryptocurrency researcher SMQKE responded promptly to the OCC’s announcement, suggesting that the regulatory clarity provided by the GENIUS Act could deliver notable advantages for XRP. He openly stated that the new legislation will have positive implications for XRP’s role in digital assets and payments.
SMQKE referenced supporting research that examines Ripple’s RLUSD, a USD-backed stablecoin built on the XRP Ledger. RLUSD transactions incur a small fee denominated in XRP, which is permanently burned. The research asserts that consistent burning of XRP during transactions could drive upward price momentum by reducing the token’s overall supply.
As RLUSD adoption expands in cross-border payments and remittances, XRP could become a crucial bridge currency for providing liquidity, according to research highlighted by SMQKE.
The supporting documentation also implies that a well-defined, regulated framework provided by the GENIUS Act strengthens the credibility of RLUSD among financial institutions, further increasing overall adoption.
Mini dictionary: The Office of the Comptroller of the Currency (OCC) is an independent bureau within the US Department of the Treasury responsible for chartering, regulating, and supervising all national banks and federal savings associations in the United States.
Institutional adoption and regulatory clarity
The research connects RLUSD’s growth potential to its compliance with strict reserve and audit requirements set by the GENIUS Act. Meeting these requirements could enhance RLUSD’s reputation among banks and payment providers, laying the groundwork for further adoption. Increased adoption would lead to more RLUSD transactions, increasing the frequency of associated XRP burns.
Though XRP is not a stablecoin, the GENIUS Act’s guidance regarding digital asset classification may also influence XRP’s regulatory status. The research points out that the Act could help XRP gain recognition as a utility token rather than a security, an issue that has played a central role in Ripple’s lengthy legal dispute with the US Securities and Exchange Commission (SEC).
By offering regulatory clarity for stablecoin issuers, the GENIUS Act may also lower entry barriers for financial institutions considering stablecoin solutions. This environment could support joint adoption of both RLUSD and XRP in digital payment networks.
| Token | Type | Burn Mechanism | Regulatory Impact |
|---|---|---|---|
| XRP | Utility token | Fee burned per transaction | Potential reclassification as utility |
| RLUSD | Stablecoin (USD-backed) | Generates XRP burns | Stronger institutional trust post-GENIUS Act |
Community reaction
SMQKE’s analysis drew notable attention within the XRP community. By labeling his work “Documented,” the researcher indicated a high degree of confidence in the supporting evidence. Community members emphasized the analysis as a foundation for renewed optimism about XRP’s future use cases.
The GENIUS Act gives Ripple and RLUSD a clear regulatory foundation, which could extend positive effects to XRP as well.
Ripple, the US-based technology company behind XRP, finds itself with improved regulatory clarity for its stablecoin product as a result of the OCC’s latest move. SMQKE argued that this environment creates a ripple effect, potentially benefiting broader digital asset adoption and XRP’s practical function in financial markets.
