The cryptocurrency market is abuzz with anticipation as Ripple (XRP) stands on the brink of a potential breakout, fueled by upcoming regulatory developments. Recent statements from U.S. Senator Bill Hagerty suggest that the GENIUS Act—a landmark stablecoin legislation—could pass in the Senate as early as next week. This development may serve as a powerful catalyst for Ripple’s native stablecoin, RLUSD, potentially reshaping the stablecoin landscape and significantly influencing XRP price dynamics.
Currently, XRP trades at $2.34, down 3.4% over the past 24 hours, with trading volume declining by 39%, according to market data. Meanwhile, RLUSD holds a market cap of $313 million, supported by approximately 2,660 holders. Despite its relatively modest size compared to industry giant Tether (USDT), which boasts a staggering $150 billion market cap and $66 billion in daily trading volume, RLUSD is positioned for accelerated growth—especially if the GENIUS Act clears the legislative path for U.S.-backed payment stablecoins.
👉 Discover how regulatory momentum could unlock XRP’s next major price surge.
The GENIUS Act: A Game-Changer for U.S. Stablecoins
The GENIUS Act (Generative, Efficient, Network-Improving, and Unified Settlement) aims to establish a clear regulatory framework for dollar-pegged stablecoins used in payments. Senator Hagerty’s endorsement signals strong bipartisan support, suggesting that the bill could soon become law. If passed, it would grant legally compliant, U.S.-issued stablecoins like RLUSD a distinct advantage over offshore alternatives such as USDT.
Bo Hines, the White House Advisor on Digital Assets, emphasized the strategic importance of domestic stablecoins:
“Stablecoins strengthen U.S. dollar dominance, modernise our outdated payment rails, and give Americans faster, cheaper, and more transparent ways to move money.”
This regulatory tailwind could dramatically boost RLUSD adoption, especially if financial institutions and payment processors begin favoring compliant, audited U.S. stablecoins over less transparent options. For Ripple, this represents more than just a product upgrade—it’s a pivotal moment that could drive network usage, increase demand for XRP, and catalyze a broader market revaluation.
Could RLUSD Reach 50% of Tether’s Market Cap?
Achieving a $75 billion market cap—half of Tether’s current valuation—is an ambitious goal, but not entirely out of reach in the medium to long term. While RLUSD starts from a base of $313 million, its growth trajectory since launch has been promising. Over the past five months, its market cap has increased nearly sixfold—a trend that could accelerate under favorable regulation.
If RLUSD captures even a fraction of USDT’s dominance—particularly in cross-border payments, DeFi platforms, and institutional settlements—it could rapidly scale. A sixfold increase from its current level would push RLUSD toward a $2 billion market cap by year-end. With the GENIUS Act removing regulatory uncertainty and encouraging integration into mainstream finance, that pace could quicken significantly.
Moreover, Ripple’s existing partnerships with banks and payment providers through RippleNet offer a ready-made distribution channel for RLUSD. As more platforms adopt RLUSD for real-time settlements, demand for XRP as a bridge asset could rise in tandem.
👉 See how growing stablecoin adoption might drive XRP’s next bull run.
Historical Precedent: Regulatory Clarity Fuels XRP Gains
History offers a compelling precedent. In December 2024, following regulatory approval for RLUSD, XRP surged over 70% within a single month. This reaction underscores how positively the market responds to clarity and institutional validation.
Today’s scenario mirrors that turning point. With the GENIUS Act poised to provide a robust legal foundation for U.S. payment stablecoins, investor confidence in RLUSD—and by extension, XRP—is likely to grow. A 30% rally from the current $2.34 price would propel XRP toward **$3.04, while sustained momentum could push it toward $4**, testing new all-time highs.
Technical Outlook: Bullish Signals Emerge on Weekly Chart
Beyond fundamentals, technical indicators are flashing early signs of a bullish reversal. On the weekly chart, XRP has broken above the upper boundary of a falling wedge pattern—a classic bullish formation often preceding strong upward moves.
Key indicators support this outlook:
- The Relative Strength Index (RSI) is trending northward, forming higher lows and confirming increasing buying pressure.
- The Awesome Oscillator (AO) has turned positive again, with green bars signaling strengthening bullish momentum.
For the breakout to be confirmed, XRP must sustain a decisive close above the resistance level formed by the falling wedge. If achieved, the path to $3.50–$4.00 becomes increasingly viable.
Market analysts believe that widespread RLUSD adoption—enabled by the GENIUS Act—could provide the necessary catalyst to lock in this technical breakout and ignite a sustained rally.
Frequently Asked Questions (FAQs)
Q: How would RLUSD reaching 50% of Tether’s market cap affect XRP price?
A: If RLUSD achieves a $75 billion market cap, it would signal massive institutional adoption and increased utility for Ripple’s ecosystem. This could drive significant demand for XRP, potentially pushing its price above $4.
Q: What is the GENIUS Act’s impact on RLUSD?
A: The GENIUS Act would create a favorable regulatory environment for U.S.-issued payment stablecoins like RLUSD, giving them a competitive edge over non-compliant or offshore alternatives such as USDT.
Q: Can XRP realistically reach $4?
A: Yes. Technical patterns like the falling wedge breakout, combined with growing RLUSD adoption and regulatory tailwinds, make a move toward $4 technically and fundamentally plausible.
Q: What role does XRP play in RLUSD transactions?
A: While RLUSD operates as a stablecoin, XRP often serves as a liquidity bridge in cross-border settlements within RippleNet, enhancing transaction efficiency and driving demand for the native token.
Q: Is RLUSD already being used in real-world applications?
A: Yes. RLUSD is now live on Aave V3 and integrated into various DeFi protocols. Its use in institutional payment corridors is expected to expand post-GENIUS Act approval.
Q: How does regulatory approval influence crypto prices?
A: Clear regulations reduce uncertainty, attract institutional investors, and increase mainstream adoption—all of which tend to have a strong positive effect on asset valuations.
👉 Explore how regulatory milestones are shaping the future of digital assets.
Conclusion
The convergence of regulatory progress, product innovation, and technical momentum positions XRP for a potentially transformative phase. The upcoming vote on the GENIUS Act isn’t just about stablecoin policy—it’s a potential inflection point for Ripple’s entire ecosystem.
If RLUSD gains widespread adoption as a trusted U.S. payment stablecoin, its growth could directly translate into increased demand for XRP, driving price appreciation and network expansion. While reaching 50% of Tether’s market cap remains a long-term vision, even incremental gains could have an outsized impact on sentiment and valuation.
For investors and observers alike, the coming weeks will be critical. As legislative clarity emerges and technical indicators align, XRP may be setting the stage for its most significant rally yet—one anchored not just in speculation, but in real-world utility and regulatory legitimacy.
Core Keywords: XRP price, RLUSD, GENIUS Act, Tether market cap, stablecoin adoption, RippleNet, XRP technical analysis