Brad Garlinghouse, CEO of Ripple (CRYPTO: XRP) Labs, has hailed the passage of the GENIUS Act as a “transformational legislation” that marks a historic turning point for the U.S. financial sector, drawing parallels to the Dodd-Frank Act of 2010.
What Happened: In a post on X, Garlinghouse celebrated the bill's 308-122 House approval, noting it ends a 15-year gap since the last major financial regulation, positioning the U.S. as a leader in innovative financial technology, particularly stablecoins.
The Guiding and Establishing National Innovation for U.S. Stablecoins or GENIUS Act, set for signing by President Donald Trump on Friday afternoon at the White House, establishes a regulatory framework for stablecoins—cryptocurrencies pegged to assets like the U.S. dollar.
Garlinghouse, whose company's XRP Ledger underpins the XRP cryptocurrency, recently hit a new all-time high of $$3.84, sees this as a boon for Ripple's RLUSD stablecoin.
He thanked bipartisan leaders, including Rep. French Hill and Speaker Johnson, for their support, reflecting the bill's unexpected cross-party backing.
Garlinghouse's comparison to Dodd-Frank, enacted post-2008 financial crisis, underscores the GENIUS Act's significance.
While Dodd-Frank aimed to stabilize traditional finance, the new legislation targets the crypto boom, with the stablecoin market projected to reach $1.6-$3.7 trillion by 2030, per Citigroup.
Why It Matters: Apart from Garlinghouse, SEC Chair Paul Atkins also deemed the passage of the GENIUS Act, also known as the stablecoin bill, a “historic milestone” for crypto entrepreneurs and market participants.
Brian Armstrong, CEO of America's largest cryptocurrency exchange, Coinbase Global Inc. (NASDAQ:COIN), described the development as "huge" and stated that the industry is "incredibly close to having a clear regulatory framework."
Robinhood Markets Inc. (NASDAQ:HOOD) CEO Vlad Tenev said it’s “a good day for innovation” in America, taking a step closer to making cryptocurrency the backbone of the financial system.
Concerns over Trump-backed ventures and a potential conflict of interest have heightened scrutiny of the bills, with senior Democrat Sen. Elizabeth Warren (D-Mass.) among the most vocal opponents.
Price Action: During the publication of this article, XRP was trading at $3.53 per coin, whereas Bitcoin (CRYPTO: BTC) was trading at $$119,830.53 per coin. On the other hand, Ethereum (CRYPTO: ETH) was at the $3,646.94 level.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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