The Genius Act Ignites a New Order in the Cryptocurrency World!
New Regulations for Stablecoins Are in Motion, and XRP Unexpectedly Becomes the Biggest Winner?
On May 19, the U.S. Senate passed a key procedural vote for the 'GENIUS Act,' just a step away from becoming official law. If successfully implemented, it will not only reshape the stablecoin market but may also completely rewrite the survival rules of the entire crypto ecosystem.
Core of the Act: Clean Up the Crypto Space, Empower the Strong
The act requires all stablecoins to achieve:
1:1 fiat reserve backing,
Monthly audit reports,
A clear and executable redemption mechanism.
This move is seen as a direct counterattack against the stablecoin disaster of 2022, aiming to eliminate high-risk projects and clear obstacles for institutional funds to enter the market. Once stablecoins become 'clean,' the safety of funds will dramatically increase, and market confidence will rise accordingly.
The House of Representatives is About to Review, Political Games Intensify
Next, the act will enter the review phase in the House, with the focus on Trump's digital asset layout, DeFi boundaries, and user protection. Once passed, both chambers must reach a final consensus, and it is expected that Trump will sign this case and expedite its execution.
Implementation includes:
100% reserve backing,
Monthly audit obligations,
Federal Reserve and OCC regulation,
Setting higher thresholds for issuers with a market cap over $50 billion.
XRP: Not a Stablecoin, But Reaping Benefits?
Although XRP is not a stablecoin, it serves as the core channel for global cross-border payments, with a high demand for stable and transparent digital dollars. The more reliable the stablecoins, the higher the transfer efficiency of XRP and the trust level from banks.
This means that—once the act is implemented, XRP will be favored by global financial institutions, potentially becoming an unexpected breakout point.
The key to the next wave of market trends may not lie in Bitcoin but in XRP.
