17-7-2025 – XRP rallied 6% to $3.06 following the U.S. House of Representatives’ advancement of the GENIUS Act, which establishes comprehensive federal stablecoin regulations that could benefit Ripple’s RLUSD token and strengthen XRP’s market position.

The legislation creates a regulatory framework requiring stablecoin issuers to maintain full reserve backing, undergo regular audits, and obtain licensing from U.S. regulatory bodies. Ripple has strategically positioned itself for compliance by partnering with BNY Mellon as custodian for RLUSD reserves, which include U.S. Treasuries, cash, and money market funds. The company has also applied for a national trust bank charter and Federal Reserve master account, potentially making RLUSD one of the first federally compliant stablecoins.

The GENIUS Act shifts regulatory oversight from the SEC to the Treasury and Office of the Comptroller of the Currency, reducing legal uncertainties that have surrounded XRP. This change reinforces XRP’s classification as a utility token rather than a security, addressing years of regulatory ambiguity. The clearer framework is expected to accelerate RLUSD adoption, driving increased on-chain activity that could boost demand for XRP as a liquidity bridge in foreign exchange swaps and stablecoin conversions.

Market analysts view the positive reaction as evidence of growing institutional confidence in XRP’s regulatory standing. The legislative advancement represents a significant milestone for both Ripple and the broader cryptocurrency sector, establishing structured guidelines that could foster sustainable growth and transparency.