Stablecoins as cash are now officially recognized by the US Securities and Exchange Commission through interim guidance released Monday. The regulatory shift permits qualifying USD-pegged stablecoins as cash to be treated as cash equivalents on corporate balance sheets, potentially triggering massive institutional adoption. This development strengthens XRP regulation clarity and accelerates RLUSD institutional adoption under SEC crypto guidance.
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Why Stablecoins as Cash Signals XRP Growth And Bank Involvement
Through several key regulatory approaches, the SEC guidance has established certain critical criteria for digital assets to qualify as cash equivalents – and these include full backing by cash or Treasury bills, maintaining a 1:1 peg to the US dollar, and also guaranteed redemption rights. These policy reforms have revolutionized accounting hurdles that have been preventing traditional financial institutions from adopting stablecoins as cash alternatives across numerous significant market segments.
At the time of writing, SEC Chair Paul Atkins had this to say:
“Today’s passage of the GENIUS Act sends a powerful message that this Administration is charting a new course. This is an important step to spur innovation by providing the crypto industry with clear rules of the road.”
RLUSD Positioned for Immediate Benefits
Ripple’s RLUSD stablecoin appears perfectly positioned to capitalize on this regulatory clarity around stablecoins as cash. RLUSD is fully backed by US dollar deposits, short-term US Treasuries, and cash equivalents with each token matched by equivalent fiat value. This provides XRP regulation clarity that institutions have needed.
The RLUSD stablecoin requires XRP for transaction fees, which are burned during transfers, driving demand for the token. This creates direct economic benefits as RLUSD institutional adoption accelerates under the new SEC crypto guidance framework.
GENIUS Act Foundation Enables Bank Participation
The SEC guidance aligns with the recently enacted GENIUS Act, signed by President Trump in July 2025. The law formally acknowledges regulated stablecoins as cash as a new financial instrument that is not a security or commodity.
Paul Atkins also stated:
“Payment stablecoins will play a significant role in the securities industry moving forward, which is why I have asked SEC staff to consider whether guidance, rulemaking, or other steps may be helpful to accommodate SEC registrants utilizing payment stablecoins, including for settlement and margining.”
For banks and lenders, treating stablecoins as cash equivalents reduces compliance risk and creates room for direct involvement without regulatory uncertainty. This addresses years of hesitation that discouraged financial institutions from engaging with stablecoins as cash alternatives.
XRP Utility Model Gains Validation
Georgios Vlachos, co-founder of Axelar, said that RLUSD will boost XRP demand, strengthening XRP regulation clarity benefits:
“When you do those transfers, you pay for gas in XRP. So, the XRP holders are still going to benefit because you burn some XRP every time you do a transaction.”
Every RLUSD transaction requires XRP for fees, creating sustained demand as RLUSD institutional adoption increases. The SEC crypto guidance provides the regulatory certainty needed for large-scale institutional adoption while maintaining investor protections.
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This regulatory evolution positions compliant stablecoins as cash for explosive growth as traditional finance gains clarity to embrace digital dollar alternatives. The combination of GENIUS Act framework and SEC guidance creates unprecedented opportunities for mass institutional adoption of stablecoins as cash equivalents.