- Ethereum could benefit most from new U.S. stablecoin regulations.
- GENIUS Act favors compliant issuers like Ripple and Circle.
- Deaton highlights Ethereum’s growing role in regulated crypto finance.
Pro-Ripple advocate and prominent crypto attorney John Deaton has identified Circle’s USDC, Ripple’s RLUSD, and Ethereum as the biggest winners of the newly approved GENIUS Act. His comments came as a reply to financial analyst Nate Geraci, who highlighted CNBC’s reference to Ethereum as “Wall Street’s invisible backbone.”
In his response, Deaton acknowledged that many expect Circle and Ripple to benefit under the new law. However, he stressed that Ethereum could gain even more, citing strong efforts by Ethereum co-founder Joseph Lubin and market strategy firm Fundstrat to place Ethereum at the core of institutional finance.
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The GENIUS Act establishes a federal regulatory framework for fiat-backed stablecoins in the United States. It requires issuers to maintain full one-to-one reserves backed by cash, U.S. Treasury bills, or other low-risk assets. These issuers must also obtain federal licenses and submit to routine independent audits.
Furthermore, only federally approved entities such as insured depository institutions, credit unions, and select nonbank firms are permitted to issue stablecoins. All issuers are required to comply with the Bank Secrecy Act and meet anti-money laundering and counter-terrorism financing standards.
Ethereum’s Strategic Position Gains Regulatory Edge
Although USDC and RLUSD stand to benefit directly as compliant stablecoins, Deaton emphasized Ethereum’s potential long-term advantage. He pointed to Ethereum’s role in supporting a wide range of stablecoins and decentralized finance applications already operating within the ecosystem.
He also mentioned growing interest from Tether’s Paolo Ardoino, who has hinted at a possible U.S.-based stablecoin. While no official announcement has been made, the move reflects broader industry interest in aligning with the GENIUS Act’s standards.
With the GENIUS Act now shaping the regulatory environment for stablecoins, USDC, RLUSD, and Ethereum have emerged as key players. According to the pro-Ripple advocate, their alignment with the new rules positions them to lead the next phase of U.S. crypto development.
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