Genius Act Will Be Implemented in the US In July? Why It's Big for XRP

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Crypto researcher SMQKE has highlighted a development that could significantly influence the relationship between digital assets such as RLUSD and the United States’ traditional financial system.

The document explains that the legislation establishes a federal framework for licensed stablecoins. According to the document referenced, implementation of this framework is scheduled to begin in mid-2026.

The post emphasizes that this timeline is already documented, suggesting that the regulatory groundwork for stablecoin oversight in the United States is moving into a defined phase.

The information also notes that several banking initiatives are taking place alongside these regulatory preparations. These developments indicate that financial institutions are simultaneously exploring blockchain-based infrastructure.

Banks Expand Tokenized Deposit Infrastructure

The document attached to the post describes how multiple banks in the United States are working on tokenized deposit systems.

Five regional banks- First Horizon Bank, Huntington National Bank, KeyCorp, M&T Bank, and Old National Bank- have reportedly announced plans on February 18 to launch a tokenized deposit network through the Cari Network, targeting deployment in the fourth quarter of 2026.

According to the document, the banks described the initiative as defensive infrastructure intended to address potential displacement from stablecoins. Tokenized deposits allow banks to represent traditional bank deposits on blockchain networks, enabling faster settlement while remaining within the regulated banking system.

Other major financial institutions are also advancing blockchain initiatives. BNY Mellon launched tokenized deposits on its private blockchain earlier this year.

Meanwhile, JPMorgan Chase continues to expand its blockchain payment platform, Kinexys. The platform has reportedly processed more than $3 trillion in transactions since 2019, according to the document referenced in the post.

Stablecoins and Banks Moving Into the Same Financial System

The commenter noted that stablecoins have historically operated in a grey area between digital asset infrastructure and traditional banking. The introduction of a formal federal framework would shift that arrangement by bringing licensed stablecoins under clearer regulatory oversight.

At the same time, banks are developing blockchain-based alternatives through tokenized deposits. The commenter stated that this effort reflects concerns that stablecoins could reduce the role of traditional bank deposits if dollar-denominated assets begin moving directly on blockchain networks.

The response concludes that the GENIUS Act effectively creates a system in which licensed stablecoins and bank-issued digital deposits exist within regulated financial infrastructure.

According to the commenter, the July 2026 implementation date will kickstart a new phase in which regulated digital dollars are integrated into the U.S. financial system.

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