The GENIUS Act could boost XRP Ledger activity by supporting RLUSD’s growth, according to crypto researcher SMQKE.
The researcher posted documents on X suggesting that stablecoin regulation could strengthen RLUSD adoption while also increasing XRP activity through transaction fees on the XRP Ledger. SMQKE summarized the claim in his tweet, writing, “Yes, the GENIUS Act will amplify XRP’s use case. This is documented below.”
Yes, the GENIUS Act will amplify XRP’s use case.✅
This is documented below.📝👇 https://t.co/hZLbzfHrZd pic.twitter.com/vbEpp0Mff4
— SMQKE (@SMQKEDQG) September 24, 2026
SMQKE Connects GENIUS Act to RLUSD Adoption
The document attached to SMQKE’s post examines how the GENIUS Act could affect RLUSD and XRP. It says the legislation establishes requirements covering reserves, licensing, and interoperability for stablecoins while creating a regulated environment for their use in financial markets.
President Donald Trump signed the GENIUS Act into law on July 18, 2025. The Treasury Department said the law establishes a federal regulatory framework for payment stablecoin issuers in the United States.
SMQKE’s document focuses on what that framework could mean for RLUSD. It says stronger compliance requirements could improve confidence among financial institutions and support greater adoption of the stablecoin.
Ripple currently issues RLUSD on the XRP Ledger and Ethereum, while its documentation also lists additional supported networks. Ripple says RLUSD maintains a one-dollar value and backs each token with reserves of cash, cash equivalents, and other permitted assets.
RLUSD Transactions Use XRP for Fees
The document then connects increased RLUSD activity with XRP usage on the XRP Ledger.
XRPL requires every transaction to destroy a small amount of XRP as a transaction cost. The ledger currently sets the minimum standard transaction cost at 10 drops, although the fee can increase when network demand rises. The destroyed XRP doesn’t go to a validator or another party; it’s permanently removed from circulation.
SMQKE’s document therefore argues that higher RLUSD activity could generate more XRP-denominated transaction fees. It also suggests that using RLUSD in cross-border payments could create additional activity for the XRP Ledger.
One commenter, TipTopJester, challenged the document’s citations and questioned the scale of the effect on XRP. The commenter acknowledged that the GENIUS Act could help RLUSD compete while noting that each RLUSD transaction burns only a small amount of XRP. TipTopJester also said those burns remain small compared with XRP’s circulating supply and described the direct effect of GENIUS on XRP as limited.
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The XRP and RLUSD Distinction
The discussion also separates the roles of XRP and RLUSD. Ripple’s documentation describes XRP as the XRP Ledger’s native cryptocurrency, while RLUSD functions as a dollar-backed stablecoin designed for payments and settlements.
SMQKE’s position centers on the potential relationship between the two. If the GENIUS Act supports greater stablecoin adoption and RLUSD gains more usage on the XRP Ledger, that activity would generate additional XRP transaction fees.
The document does not establish how large that effect will become. Instead, it presents regulatory clarity for stablecoins, increased RLUSD adoption, and higher XRP Ledger activity as connected developments that could expand XRP’s utility.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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