Ripple's rival Ethereum emerges as the more significant beneficiary of the GENIUS Act, according to a pro-XRP lawyer's disclosure.
The GENIUS Act, officially passed in July 2025, marks a significant milestone in the regulation of digital assets and stablecoins within the US market. The comprehensive legislation aims to provide clarity for issuers, consumers, and financial institutions, focusing primarily on stablecoins backed by US dollars or liquid assets [1][3][5].
The Act's passing has had a profound impact on the crypto industry, particularly on Ethereum and Ripple.
Ethereum, as the primary blockchain on which most stablecoins operate, including high-profile ones like Circle’s USDC, stands to benefit the most. The Act's framework boosts Ethereum's ecosystem by enhancing confidence in these stablecoins, which mainly use Ethereum’s network for transactions and DeFi applications [2][4]. As a result, Ethereum's native token (ETH) experienced a notable rally, with a 25% price increase shortly after the law's passage. This surge is attributed to increased institutional demand as regulators clarify stablecoin rules, improving Ethereum’s utility in financial markets, NFTs, and tokenized assets [4].
Institutional investors and major asset managers, including BlackRock, are increasing Ethereum allocations, partly to cover transaction fees associated with stablecoin activity on Ethereum, highlighting a direct correlation between the regulatory clarity from GENIUS and Ethereum's growing financial relevance [4].
In contrast, Ripple's gains are recognized but more limited. Ripple launched a new stablecoin, RLUSD, which stands to benefit from the regulatory clarity the GENIUS Act provides for approved stablecoin issuers. However, industry experts like attorney John Deaton suggest Ripple’s overall advantage is overshadowed by Ethereum’s broader infrastructural and ecosystem advantages [2].
For other blockchain projects, the impact is generally less significant unless they have a clear focus on stablecoins or are integrated within U.S. regulatory frameworks outlined by GENIUS. The Act sets strict issuance rules, limiting stablecoin issuance to approved U.S. bank-affiliated entities or equivalently supervised foreign issuers, which may restrict or delay stablecoin activity on other chains not meeting these criteria [5].
In summary, the GENIUS Act:
- Positions Ethereum as the largest beneficiary due to its prevailing stablecoin infrastructure and DeFi ecosystem relying heavily on the now-regulated stablecoin environment.
- Provides regulatory clarity boosting Ripple’s stablecoin prospects, but with relatively smaller ecosystem-wide impact compared to Ethereum.
- Imposes new compliance and issuance standards that will likely shape stablecoin activity across all blockchains, favoring those with strong U.S. regulatory alignment [1][2][3][4][5].
The focus now remains on whether Ethereum’s price will crash further or rebound, with $4,000 holding the key. Meanwhile, Ripple continues to navigate its ongoing legal battles with the US SEC, highlighting its commitment to regulatory transparency. John Deaton, a pro-XRP attorney, has released a report analyzing blockchain projects, emphasizing the importance of clear regulations for blockchain networks and cryptocurrencies in the evolving market.
References: [1] CoinDesk. (2025). GENIUS Act Passes, Bringing Regulatory Clarity to Stablecoins. [online] Available at: https://www.coindesk.com/business/2025/07/28/genius-act-passes-bringing-regulatory-clarity-to-stablecoins/
[2] Deaton, J. (2025). GENIUS Act: Ethereum, Ripple, and the Future of Crypto Regulation. [online] Available at: https://johnedeaton.substack.com/p/genius-act-ethereum-ripple-and-the
[3] The Block. (2025). What the GENIUS Act Means for Stablecoins. [online] Available at: https://www.theblockcrypto.com/post/119722/what-the-genius-act-means-for-stablecoins
[4] Bloomberg. (2025). Ethereum Rallies on GENIUS Act, BlackRock Increases Allocation. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-28/ethereum-rallies-on-genius-act-blackrock-increases-allocation
[5] Forbes. (2025). GENIUS Act: A New Era for Stablecoins and Crypto Regulation. [online] Available at: https://www.forbes.com/sites/jasonbrett/2025/07/28/genius-act-a-new-era-for-stablecoins-and-crypto-regulation/?sh=611c794e7f7a
- The passage of the GENIUS Act has led to Ethereum's native token (ETH) experiencing a notable rally, with a 25% price increase, primarily due to increased institutional demand as regulators clarify stablecoin rules, thereby improving Ethereum’s utility in financial markets.
- While Ripple's gains from the GENIUS Act are recognized, they are more limited compared to Ethereum, as industry experts suggest Ripple’s overall advantage is overshadowed by Ethereum’s broader infrastructural and ecosystem advantages, despite Ripple launching a new stablecoin, RLUSD.
