Following the passage of the GENIUS Act, notable figures in the cryptocurrency world, including pro-XRP lawyer John Deaton, have begun analyzing its impact on leading blockchain projects such as Ripple and Ethereum. Deaton’s findings indicate that while Ripple’s RLUSD stablecoin and Circle’s USDC may gain traction, Ethereum could emerge as the clear frontrunner in the new landscape shaped by this legislation.
Why Ethereum Might Lead the Charge Post-GENIUS Act
In a recent update shared on social media, Deaton elaborated on the GENIUS Act’s implications. Although Ripple and Circle remain in the spotlight, he argues that Ethereum stands to benefit the most from the updated regulatory framework compared to its competitors in the space.
The GENIUS Act—an acronym for Government Encouragement of National Innovation and Upliftment of Startups—is designed to bring regulatory clarity to digital assets and stablecoins operating within the United States. Many industry experts view this legislation as a pivotal moment, potentially transforming the crypto landscape significantly.
While Deaton acknowledged that Ripple’s RLUSD and USDC from Circle could see significant benefits under the new law, he stressed that Ethereum’s established infrastructure makes it exceptionally well-positioned to seize the opportunities presented by this shift. Its robust ecosystem and ties to stable cryptocurrencies give it a unique advantage.
Deaton also highlighted key figures within the Ethereum community—such as AK_EtherMachine and Ethereum co-founder Joseph Lubin—who possess the vision and insight to navigate the evolving regulatory environment. Furthermore, the growing interest among crypto players, like Tether, to launch a US-compliant version of the USDT stablecoin illustrates a broader drive towards regulatory alignment and innovation anchored by Ethereum’s capabilities. This momentum signals a substantial shift towards embracing compliance while leveraging Ethereum’s fundamentals in the stablecoin arena.
At this crucial juncture, regulatory clarity remains vital for determining which blockchain ecosystems will thrive. Ripple has long championed transparent compliance throughout its legal challenges with the US SEC, but the flexibility of Ethereum’s developer-friendly infrastructure may offer a more agile solution for meeting emerging compliance requirements in the United States.
Market Reactions: Ethereum and XRP Prices Fluctuate
Despite fresh optimism stemming from the GENIUS Act, both Ethereum and XRP have witnessed price corrections. According to CoinMarketCap, ETH saw an impressive gain of over 40% in the previous month. However, in the past week, it has seen a nearly 9% decline, currently trading at approximately $3,548.
Similarly, XRP has faced a decline after surging past the $3 mark. While it had a robust increase of around 34.8% over the last month, it fell by 8.33% this week, now hovering between $2.8 and $3, struggling to regain its previous support levels.
