Ripple's RLUSD seems increasingly ready to surpass USDT. RLUSD has already positioned itself as a regulator-friendly stablecoin, unlike USDT. Ripple has requested a national trust bank letter and a master account with the Federal Reserve. Additionally, it stated that BNY Mellon will act as the official custodian of RLUSD reserves, backed by the U.S. Treasury.
If the GENIUS Act is approved, RLUSD will be one of the first stablecoins to be fully integrated. This will allow it to gain a significant advantage, as billions could flow from USDT to regulated alternatives.
Cryptocurrency enthusiast Jacob King commented that Tether's weekly printing of billions of USDT gives the impression that it is artificially driving up Bitcoin's price ahead of imminent regulation. He also warned of a "big drop" if those funds flow into fully audited coins like RLUSD.
In addition to RLUSD, U.S.-based Circle could significantly benefit from the law. Still, its shares rose 34% after news of the GENIUS Act's approval in the Senate, highlighting investors' optimism around regulated stablecoins.
As Tether mints billions more USDT to defend its market share, the regulation bill could redefine what constitutes a "safe" stablecoin in the U.S. If approved, RLUSD is positioned to capture a wave of capital migrating from parallel stablecoins like USDT.