Ripple’s new stablecoin RLUSD is quickly gaining ground and it’s stirring up serious questions about XRP’s future role in the ecosystem. While Ripple maintains that both assets serve different purposes, some analysts aren’t convinced. Is RLUSD just a helpful addition, or is it quietly edging XRP out of the spotlight?
Let’s unpack what’s going on.
RLUSD Takes Center Stage, But What About XRP?
Since its December 2024 debut, RLUSD has been on a hot streak. It recently secured a listing on Gemini, one of the top U.S.-based exchanges, pushing its market cap to $317 million with a daily trading volume of $52 million.
That kind of momentum is hard to ignore and it’s got the XRP community buzzing.
According to crypto influencer All Things XRP, the two assets are meant to complement each other. RLUSD brings price stability to the table, while XRP shines in speed and efficiency, though it remains a volatile asset.
The idea is that both can coexist, each serving a distinct role in Ripple’s broader payments ecosystem.
XRP’s Shrinking Role Raises Eyebrows
Despite reassurances from Ripple, some in the community feel that XRP’s position is slowly being downgraded. Elena Schoen, a self-proclaimed “Chain Detective,” recently raised red flags about what she sees as a subtle but strategic shift.
In a post on X, Schoen claimed that XRP is now mostly used for covering transaction fees on the XRP Ledger while RLUSD is stepping up to handle the heavy lifting: liquidity provision, cross-border transactions, institutional and retail settlements, and multi-fiat onboarding.
Ripple appears to be slowly reducing the role of XRP down to basically transaction fees. Is this enough? Please read Ripples site, and be able to back up your thoughts. ‘Cause transaction fees are the only absolute reason XRP is needed. RLUSD can be used for everything else.…
RLUSD’s Addition to Ripple Payments: How Good Is This Move?
Ripple’s decision to integrate RLUSD into Ripple Payments by the end of 2025 only adds fuel to the fire. CEO Brad Garlinghouse called RLUSD the new “gold standard” for institutional transactions, citing its U.S. dollar peg as a way to eliminate volatility from cross-border payments.
That’s a big deal. While XRP has long been Ripple’s go-to bridge asset, its price swings have always been a concern for larger players. Now, with RLUSD providing a more predictable alternative, some fear that XRP’s utility – and liquidity – could slowly fade.
Ripple Execs Respond: It’s Not One or the Other
To address the growing concerns, several Ripple executives have chimed in previously.
President Monica Long emphasized that clients aren’t being forced to choose sides – XRP and RLUSD are part of a deliberate dual-token strategy. Whether a business values speed or stability, Ripple aims to offer the right tool for the job.
CTO David Schwartz had also taken to X to clarify that RLUSD is not replacing XRP. In his view, XRP offers unique technical advantages: auto-bridging, pathfinding, and, critically, its decentralized nature – XRP cannot be frozen, and it’s not subject to jurisdictional control.
Meanwhile, Brad Garlinghouse continues to stand firm. In a January 2025 interview with Citizens Bank, he explained that RLUSD is simply fiat on-chain. XRP, on the other hand, remains essential as a neutral, fast, and borderless bridge currency on the XRPL’s decentralized exchange.
So, where does this leave us? For now, both tokens are balanced in their weightage. Whether that balance holds through 2025 remains to be seen.
XRP price has reversed from its recent multi-week high of $2.30 to trade at $2.18 at press time. Despite this slip, Ripple still eyes gains past $3 after the first spot XRP ETF offered by Teucrium amassed over $40M in net assets, barely a month after launching. The ETF’s success comes after Teucrium’s CEO told Bloomberg that XRP has the most utility among other crypto coins.
XRP Price Eyes Further Gains Amid ETF Success
According to the Teucrium website, the 2x Long Daily XRP ETF has amassed more than $40M in net assets. This is a commendable milestone considering that the product launched on April 8 and has been trading for less than three weeks.
Teucrium’s XXRP leveraged product is the first XRP ETF to launch in the US, and the amount of interest it is amassing from investors despite ongoing market anxiety is a bullish sign for the Ripple price and could aid a breakout past the key resistance hurdle of $2.20 to all-time highs.
At the same time, Teucrium’s CEO appeared in an interview with Bloomberg, stating that XRP has the most utility in the crypto industry. He opined that Ripple has amassed utility across payments, tokenization, and most recently, brokerage services after the acquisition of Hidden Road.
Besides institutions, whales are also rapidly accumulating XRP and possibly positioning themselves for further gains. Data from Santiment shows that as XRP price broke out to multi-week highs, the addresses holding between 1M and 100M Ripple purchased 260M tokens.
XRP Whale Balances
The high interest from whales and institutions shows a bullish outlook towards XRP value today and confidence among traders that the altcoin will extend its gains and smash the $3 price level to create a new record high in the coming months.
Ripple Teases Breakout From Channel Pattern
After forming a series of lower lows in the last three months, the XRP price is now teasing a breakout from a descending parallel channel, to form a higher low. This breakout will be confirmed if Ripple can make a decisive close above resistance at the upper trendline.
The first resistance level that XRP price needs to overcome if this breakout happens is $2.75. If it flips this level, the uptrend will continue past $3 towards the next hurdle of $3.29. Clearing this hurdle will unlock the rally to all-time highs.
However, traders should take note of the RSI movements, which currently show that the recent buying pressure that pushed Ripple to $2.30 is weakening. The RSI needs to recover and continue rising for a strong upward momentum. The uptrend will also occur if the MACD line crosses above the zero line.
XRP/USDT: 1-day Chart
This bullish XRP price forecast will be invalidated if the RSI falls back below 50, and the MACD rise turns out to be a fake breakout. An extension of the downtrend will happen if the XRP price falls below support at $2.05.
Considering the high institutional interest towards Teucrium’s XRP ETF and whale accumulation, it is likely that Ripple resumes its recent uptrend. However, traders booking profits after the recent rally might stall the uptrend.
Regulatory sandboxes have emerged as a concept to drive innovation in a controlled setting. They allow companies to test new crypto products and services while regulators observe and adapt regulations. While jurisdictions like the UK, the UAE, and Singapore have already created sandboxes, the US has yet to create one at the federal level.
BeInCrypto spoke with representatives of OilXCoin and Asset Token Ventures LLC to understand what the US needs to build a federal regulatory sandbox and how it can unify a fragmented testing environment for innovators.
A Patchwork Approach
As the name suggests, regulatory sandboxes have emerged as a tool for providing a controlled testing ground. This environment allows entrepreneurs, businesses, industry leaders, and lawmakers to interact with new and innovative products.
According to the Institute for Reforming Government, 14 states in the United States currently have regulatory sandboxes for fintech innovation.
Of those, 11 are industry-specific and cover other sectors like artificial intelligence, real estate, insurance, child care, healthcare, and education.
Utah, Arizona, and Kentucky are the only jurisdictions among these states with an all-inclusive sandbox. Meanwhile, all but 12 states are currently considering legislation to create some regulatory sandbox for innovation.
Due to its relatively short existence, the crypto market has underdeveloped legislation. While state-level sandboxes enable innovators to demonstrate their products’ capabilities to the public, they are significantly constrained by the lack of federal regulatory sandboxes.
The Need for Federal Oversight
Though statewide efforts to create regulatory sandboxes are vital for innovation, entrepreneurs and businesses still face constraints in developing across borders or reaching an audience at a national level.
Rapid advancements in fields like blockchain and artificial intelligence (AI) add a particular layer of uncertainty, given that existing legal frameworks may not be well-suited to these technologies.
At the same time, regulators may face difficulties in developing appropriate rules for these technologies due to a potential lack of familiarity with these constantly changing industries.
As a result, industry participants are increasingly calling for creating a federal regulatory sandbox. This environment could be a collaborative framework to address the gap, facilitating communication and knowledge sharing between regulators and industry stakeholders.
“The implementation of a federal regulatory sandbox in the United States has the potential to significantly enhance both innovation and regulatory oversight by reducing the uncertainties often associated with navigating the regulatory landscape across state lines. Such an initiative could help establish a coherent framework characterized by uniformity, continuity, and a conducive environment for innovation,” said Paul Talbert, Managing Director of ATV Fund.
According to Rademacher and Talbert, this proposal would meet the needs of all players involved.
Benefits of a Federal Regulatory Sandbox
A sandbox provides innovators with a controlled environment to test products under regulatory oversight without the immediate burden of full compliance with rules that may not yet fit their technology.
It also allows regulators to acquire firsthand insights into blockchain applications, facilitating the creation of more knowledgeable and flexible regulatory policies.
“Startups should have clear eligibility criteria to determine their qualification for participation, while regulators must outline specific objectives—whether focused on refining token classification frameworks, testing DeFi applications, or improving compliance processes,” Rademacher said.
It could also help the United States reinforce its position as a leader in technological innovation.
“By fostering innovation through simplicity, regulatory certainty, and conducive environments, the United States can significantly strengthen its competitive position in the global fintech landscape,” Talbert added.
While the United States has stalled in creating a federal framework for fintech innovation, other jurisdictions around the world have already gained significant ground in this regard.
Global Precedents
The Financial Conduct Authority (FCA), which regulates the United Kingdom’s financial services, launched the first regulatory sandbox in 2014 as part of Project Innovate. This initiative aimed to provide a controlled environment for testing innovative products.
The government asked the FCA to establish a regulatory process to promote new technology-based financial services and fintech and ensure consumer protection.
The United Arab Emirates (UAE) and Singapore, in particular, have made progressive strides in creating federal regulatory sandboxes.
The UAE, for example, currently has four different sandboxes: the Abu Dhabi Global Market (ADGM) Regulation Lab, the DSFA Sandbox, the CBUAE FinTech Sandbox, and the DFF Regulation Lab.
Their focus areas include digital banking, blockchain, payment systems, AI, and autonomous transport.
Meanwhile, the Monetary Authority of Singapore (MAS) launched its Fintech Regulatory Sandbox in 2016. Three years later, MAS also launched the Sandbox Express, providing firms with a faster option for market testing certain low-risk activities in pre-defined environments.
“The success of regulatory sandboxes in jurisdictions such as the United Kingdom, Singapore, and the United Arab Emirates has highlighted the importance of key attributes: regulatory collaboration, transparent processes, continuous monitoring, and the allocation of dedicated resources. As a result, a growing number of jurisdictions worldwide are looking to replicate the frameworks established by these pioneering countries to strengthen their competitive position in the global fintech landscape,” Talbert said.
Rademacher believes these jurisdictions’ innovations should prompt the United States to accelerate its progress.
For that to happen, the United States must overcome certain hurdles.
Challenges of a Fragmented US Regulatory Landscape
A fragmented network of federal and state agencies overseeing financial services presents a key challenge to establishing a US federal regulatory sandbox.
“Unlike other countries with a single financial authority overseeing the market, the U.S. has multiple agencies—including the SEC, CFTC, and banking regulators—each with different perspectives on how digital assets should be classified and regulated. The lack of inter-agency coordination makes implementing a unified sandbox more complex than in jurisdictions with a single regulatory body,” Rademacher told BeInCrypto.
Yet, in recent years, important SEC and CFTC actors have expressed interest in adopting a more favorable regulatory approach to innovation.
“Even though I tend to be more of a beach than a sandbox type of regulator, sandboxes have proven effective in facilitating innovation in highly regulated sectors. Experience in the UK and elsewhere has shown that sandboxes can help innovators try out their innovations under real-world conditions. A sandbox can provide a viable path for smaller, disruptive firms to enter highly regulated markets to compete with larger incumbent firms,” Peirce said in a statement last May.
However, the full scope of national regulations far exceeds the authority of these two entities.
Congressional and Constitutional Hurdles
Any legislative measure to develop a federal regulatory framework for sandboxes in the United States would have to undergo Congressional approval. Talbert highlighted several potential constitutional dilemmas the promotion of an initiative of this nature may face.
“These dilemmas include issues related to the non-delegation doctrine, which raises concerns about the constitutionality of delegating legislative power; equal protection considerations under the Fifth Amendment’s Due Process Clause; challenges arising from the Supremacy Clause; and implications under the Administrative Procedure Act (APA) and principles of judicial review,” he said.
To address these complexities, Congress must enact clear legal boundaries that ensure a regulatory framework is both predictable and open. Given the current administration’s emphasis on technological innovation, the prospects for creating a sandbox appear positive.
“Given the current composition of Congress, which aligns with the political orientation of the new executive branch, there may be a timely opportunity for regulatory reform. Such reform could facilitate the creation of a cohesive federal regulatory framework and enhance collaboration among federal agencies,” Talbert told BeInCrypto.
However, creating a federal regulatory sandbox is not a one-size-fits-all solution.
Balancing State Autonomy and Federal Regulations
State autonomy is enshrined in the US Constitution. This protection means that, even though a regulatory sandbox may exist at the national level, individual states still have the authority to restrict or prohibit sandboxes within their jurisdictions.
Encouragingly, most US states are already exploring regulatory sandboxes, and the states that have already implemented them represent diverse political viewpoints.
However, other considerations beyond political resistance must also be addressed.
“A federal regulatory sandbox might also face opposition from established financial institutions, including banks, which may perceive potential threats to their existing business models. Furthermore, federal budgetary constraints could impede the government’s capacity to support the development and maintenance of a federal regulatory framework,” Talbert added.
Effective federal regulations will also require a balance between businesses’ concerns and regulators’ responsibilities.
“The two biggest risks are overregulation—imposing excessive restrictions that undermine the sandbox’s purpose—or underregulation, failing to provide meaningful clarity. If the rules are too restrictive, businesses may avoid participation, limiting the sandbox’s effectiveness. If they are too lax, there is a risk of abuse or regulatory arbitrage. A well-executed federal regulatory sandbox should not become a bureaucratic burden but rather a dynamic framework that fosters responsible growth in the digital asset space,” Rademacher told BeInCrypto.
Ultimately, the best approach will require coordination from different governing bodies, industry stakeholders, and bipartisan collaboration.
Fostering Collaboration for a Successful Sandbox
Due to recent strained communication between tech and federal agencies, Rademacher believes fostering a cooperative atmosphere is essential for creating a functional federal sandbox.
“The approach must be collaborative rather than adversarial. Agencies should view the sandbox as an opportunity to refine regulations in real time, working alongside industry participants to develop policies that foster responsible innovation. Involvement from banking regulators and the Treasury Department could also be valuable in ensuring that digital assets are integrated into the broader financial system in a responsible manner,” he said.
Achieving this requires a bipartisan approach to harmonizing regulatory goals and setting clear boundaries. Industry collaboration with lawmakers and regulators is vital to showing how a sandbox can promote responsible innovation while safeguarding consumers.
“Its success will ultimately depend on whether it serves as a bridge between innovation and regulation, rather than an additional layer of complexity,” Rademacher concluded.
Investors now fear these measures could impact revenues of U.S. firms worldwide, with concerns mounting as more countries consider retaliatory actions.
Crypto market performance, April 4 | Source: Coingecko
If the U.S. fails to find a diplomatic solution, equities could slide further, accelerating capital rotation into alternative assets.
Investors increasingly view Bitcoin as a hedge against trade policy risks, prompting fund inflows into the crypto market.
According to Coingecko data, the total market cap stabilised around $2.78 trillion, with major assets reclaiming key support levels—Bitcoin at $83,000, Ripple price at $2, and Ethereum breaking above $1,800.
XRP price surged 12.54% in two days, reclaiming the $2.12 level amid strengthening bullish momentum. The rally coincides with an early MACD crossover and a recovery within the Bollinger Bands’ lower boundary.
The Bollinger Bands indicate a potential volatility expansion after XRP touched the lower band at $1.98 and rebounded sharply.
The mid-band resistance at $2.28 aligns with the Volume Weighted Average Price (VWAP) at $2.09, reinforcing a crucial test for sustained upside.
Ripple (XRP) price analysis | Source: TradingView
A breakout above these levels could fuel a rally toward $2.58, where the upper Bollinger Band sits.
Meanwhile, MACD lines are narrowing, with the blue line approaching an upward crossover. If confirmed, this would mark a bullish reversal, echoing past rallies from similar levels.
However, Bitcoin price forecast remains a critical factor, as BTC’s next move could influence XRP’s trajectory. If Bitcoin maintains bullish sentiment, XRP could benefit from broader market strength.
Failure to break the $2.28 resistance could trigger another retest of $1.98 support, risking further declines. However, as long as XRP holds above the VWAP, the technical setup leans bullish, suggesting higher probability for further gains.
