XRP holders! A BIG Crypto Week For Ripple, Genius Act Pump?

The US crypto week is about to kick off in a couple of hours! And at the epicenter of this week lies the Genius Act that could affect how Ripple’s $RLUSD and other stablecoins operate. So, it can also be a pivotal moment in Ripple’s journey with the SEC. Ripple can break through to the other side and overcome regulatory uncertainty. 

And the biggest news is that we all thought Ripple was just a payments company. However, now they are heading straight to the top and are in a process to become a bank. That’s huge, but what does all this mean for XRP and XRP holders.

What Is the Genius Act?

So, this is a good time to recap what the Genius Act is all about. In a nutshell, it provides a clear framework for ‘payment stablecoins’. Issuers need to back them 1:1 by cash or short-term treasuries. 

It also gives a couple of clear definitions on,

• Who can issue said stablecoins.
• The reserves.
• Audit rules.
• Disclosures.

Most importantly, it states that such stablecoins are neither securities nor commodities. This is a key statement because it aims to build trust. That’s for both investors and institutions. Furthermore, it keeps fintech innovation in the USA. And, as President Trump mentioned, 

“It makes America the UNDISPUTED Leader in Digital Assets.”

Here are some reasons why it is so important.

Permitted Issuers. 

There are only three entities that can issue stablecoins.

1. Chartered non-banks.
2. Insured depositories.
3. Qualified state-licensed organizations.

This gives great consumer protection. It prevents non-regulated stablecoins from entering the market.

1:1 Reserve Mandate. 

All issued stablecoins need 1:1 backing by $USD or short-term treasuries. There will be monthly checks on this. False reporting will earn issuers penalties. This is a key feature, as one of the reasons the USG wants more stablecoin issuers is because they become big, stable holders of US Treasuries.

Licensing & Supervision.

Licenses are approved within 120 days. The FED or the OCC (Office of the Comptroller of the Currency) will watch this. Another barrier to stop bad actors.

Bankruptcy Priority.

Holders of stablecoins receive senior creditor status. This affects holders when an issuer becomes insolvent. It ranks holders high in priority for getting their money back from the issuer.

This benefits financial stability, innovation, and user protection. The Genius Act already passed the Senate and is now in the House. Upon approval, Trump will sign the Act into Law.

Ripple Applied for a US National Bank Charter With The OCC

That’s right, Ripple applied for a US National Bank Charter with the OCC. This can make Ripple the first federally licensed crypto bank in the US. This is important! What did we just learn about who can issue stablecoins under the Genius Act? Right, qualified state-licensed organizations.

If approved, this gives Ripple a couple of advantages. For example,

Dual Federal and State Oversight

Ripple will have both state-level (NYDFS) and federal (OCC) supervision. This will give its $RLUSD stablecoin a boost. It increases legal certainty and trust. 

Increased Institutional Trust

This will increase adoption of Ripple products in a big way.

Faster and Cheaper Payments

Ripple can now settle payments straight through the Federal Reserve system. This bypasses intermediary banks that will charge for their services. So, cheaper transactions and faster settlement costs.

Access to Federal Reserve Master Account

This allows Ripple to hold $RLUSD reserves straight with the Fed. It adds more transparency and security. Thus, increasing trust in $RLUSD and attracting more institutions.

Regulatory Alignment with the GENIUS Act

This positions Ripple ahead of competitors.

Source: OCC

So, one massive factor in play here is that it cements Ripple’s regulatory legitimacy. Other positive effects are that it reduces operational costs and increases institutional trust. 

This positions both $RLUSD and XRP for long term growth. Not only in the US financial system but as a worldwide player. So, this shows why Ripple has applied for a US National Bank Charter.

Why Did Ripple Apply?

It’s also not too difficult to see why Ripple applied for this bank charter. $RLUSD has few active accounts and addresses. This reflects in the number of transactions. So, the transaction volume is way down over the last 30 days. And it was also low for the previous 30 days.

So, you can see it as an admission that $RLUSD is not catching on as fast as they hoped. Check the Artemis data. $RLUSD isn’t even featured in their overview graphs. However, once I scroll down further, I do see $RLUSD. It also shows me that all volume is done on Ethereum and not even on the XRPL. It doesn’t even reach $1 million in volume there.

Source: Artemis

So, it feels to me like Ripple can only catch $USDC in the US regulated stablecoin race with a move like this. $USDC is already so far ahead of them in every measurable way. DeFiLlama lists $RLUSD as 17th among all stablecoins. It lists its market cap as only $517 million. $USDC has a $63 billion market cap. That’s a real low market cap if you want to be taken seriously.

Having said this, if their application gets approved, $RLUSD could catch up fairly well. And it would be a huge moneymaker for them if approved.

How Does this Affect Long-Term Growth for XRP?

At first glance, you would think that applying for a National Bank Charter will benefit $RLUSD. However, there’s more at stake here. XRP will also get a long-term growth boost from this. So, let’s look at some of the reasons that can trigger this.

Increased Institutional Adoption

Once the application gets approved, Ripple will be federally regulated. Banks and institutions will become more confident in Ripple and $RLUSD. However, this will also increase cross-border payments. Let alone more stablecoin transactions. Now, you need XRP to pay for all these fees. It’s simple, this drives demand for XRP. Fees on the XRP Ledger are also paid in XRP. So, XRP demand will only increase. 

Regulatory Clarity and Legitimacy

Becoming a chartered bank will set Ripple up to comply with the Genius Act. This shifts XRP status from a security to a utility token. As a result, there’s less legal risk. In turn, XRP becomes more attractive for long-term investment. It can also see more integration into financial systems.

Strategic Positioning for Future Financial Integration

XRP is all set up and ready to bridge TradFi with blockchain tech. This emphasizes long-term growth for XRP over short-term speculation. 

We also see that more tokenization of digital assets happens due to $RLUSD. For example, treasury bills. Remember, they can back $RLUSD 1:1 to comply with the Genius Act. You need XRP to tokenize these assets. Omni will distribute these assets to EVM networks. The $OMNI token saw a 220% price increase last week! $XRP will see spin-offs from this and profit from it.

So, as you can see, this is much more than only issuing a stablecoin. Or becoming a National Bank Charter. XRP will fly high as well. It’s guilty by association, and its price should go up because of it.

The XRP Price Prediction

The current XRP price is almost $3. Over the last 24 hours, it went up by 5% and 35% over the last 30 days. However, its market cap is $173.7 billion. It ranks 3rd by market cap. So, how much room is there to go higher?

CoinPedia sees for this year a top at $5.05. It won’t surprise me if XRP can beat this and possibly go up to $6. That may not be the end for this bull run, though. However, I don’t see XRP hitting $10 this year or early next year. Maybe it can top between $8 and $9.

Having said that, its long-term growth potential can exceed this over the next couple of years. But all plays will need to work in Ripple and $XRP’s favor. However, right now, it seems to have the wind in its sails.

So, where do you see the XRP top for this year going? Let me know in the comments and join our social media on X and Discord.

Disclaimer

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