XRP demonstrates its long-term growth potential.
Trump is a genius act, first major US cryptography, enforcement
President Donald Trump signed the Genius Act and established the first US cryptography to regulate stable coins.
I don’t feel much 500 dollars today – Especially when investing in the S&P 500 indexHere we can expect an average annual revenue of 10% (assuming that historical trends remain constant). That’s $50 a year. However, the cryptocurrency industry offers significantly greater profit potential than traditional asset classes such as stocks and bonds for investors willing to tolerate more volatility.
Below we look at Token Digital XRP focused on payments (Cryptography: XRP) They may make a great, long-term choice as they try to win regulatory victory in the US and disrupt the market for international trading.
The regulatory environment is relaxed
Donald Trump’s presidential victory has sparked sharp rallying with many cryptocurrencies, and it’s not hard to understand why Wall Street is so optimistic. On the campaign trail, he has pledged to support the digital asset industry, and so far his administration has met or exceeded expectations in newly passed legislation.
On July 18, Trump signed the guidance and establishment for the US Stablecoins (Genius) Act, designed to create a framework for publication. Dollar Page stablecoins. This law helps to justify cryptocurrencies as a mainstream asset class. This will make businesses and institutional investors more involved without fear of potentially breaking the rules.
The genius is a deviation from the climate under previous administrations, where litigation and enforcement suppressed the adoption of codes. XRP developer Ripple Labs was affected by this legal uncertainty.
In 2021, Ripple lost its partnership with one of its best clients. MoneyGramstopped using XRP-based liquidity solutions after Ripple was sued. Securities and Trade Commission (SEC) Claims of violation of the Securities Act. Although this case is largely resolved at XRP, which is not classified as security when sold to retail investors, there is still debate over the settlement of fines related to sales of Ripple’s XRP to institutional investors.
Paths to real-world utilities
The main selling point of XRP is focused on actual utilities. Instead of trying to become a highly speculative and often useless platform Distributed Applications (Dapps), XRP focuses on more specific markets for international payments. Its speed and low prices (0.00001 XRP per transaction) makes the ideal bridge between different currencies.
For example, if someone in the US wants to send money to Japan, they can buy XRP in dollars, then use that XRP to buy Japanese yen, slowly and bypass potentially expensive intermediaries. Dollar-Pegged Stablecoins promises to make this process even easier by removing volatility inherent to free-floating bridge currencies like XRP.
Instead of disrupting the niche, XRP developers are taking part in the fight. In 2024, they launched a stubcoin that earned its own dollars called RLUSD. Consumer use of RLUSD can indirectly benefit XRP as both tokens are built on the same network. RLUSD trading fees are paid in XRP, which is removed from the circulation (burning).
Is it too late to buy an XRP?
Despite having a relatively low unit price of just $3.15 at the time of writing, XRP is the third largest cryptocurrency, Market capitalization $187 billion. This vast size brings more brand awareness and stability, but this means investors shouldn’t expect repeating the explosive returns that XRP has enjoyed in the past. That being said, it often leads to a slow, stable race.
XRP is a graduate of the memecoin boom and bust volatility, and should focus on long-term growth potential as investors benefit from easing regulatory pressures and mitigating attractive real-world use cases.
Will Ebiefung is not in a position with any of the stocks mentioned. Motley Fool has a position in XRP and recommends. Motley Fools have a disclosure policy.
The Motley Fool is a partner at USA Today, providing financial news, analysis and commentary designed to help people control their financial lives. The content is produced independently of USA Today.
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