Stablecoins are booming in May 2025, with Circle’s USDC at $61 billion, Ripple’s RLUSD at $317 million, and Tether’s USDT dominating at $141 billion.
On May 20, 2025, the U.S. Senate passed the GENIUS Act, setting new rules for stablecoins and boosting confidence in USDC, RLUSD, and USDT. For global investors, understanding these trends and differences is crucial. ‘
GENIUS Act Passes: A Stablecoin Game-Changer
On May 20, 2025, the U.S. Senate advanced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act with a 66-32 procedural vote, surpassing the 60-vote threshold needed to move toward final passage.
Introduced by Senators Hagerty, Scott, Gillibrand, and Lummis, the bill mandates 1:1 backing with cash or Treasuries. It bans Big Tech issuance, and allows state regulation for smaller issuers (under $10 billion).
This law aims to protect consumers and keep the U.S. dollar dominant, giving stablecoins like USDC, RLUSD, and USDT a clearer legal path.
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USDC’s Strong Growth in 2025
USDC, launched by Circle and Coinbase in 2018, holds the second-largest stablecoin spot. Its market cap grew 38.6% from $44 billion in January to $61 billion by April 2025, driven by institutional trust and Circle’s IPO filing.
USDC’s price stayed stable with a 0.083% fluctuation in March, and it operates on 19 blockchains, making it ideal for trading and payments.
RLUSD’s Tough Start
Ripple’s RLUSD, launched in December 2024 on XRP Ledger and Ethereum, struggles with a $317 million market cap. Trading volume dropped 31% by May 14, 2025, showing slow adoption. Ripple’s $25 million RLUSD donation to U.S. schools and a Gemini listing haven’t gained traction, with no new tokens minted in early May.
The GENIUS Act could help RLUSD by favoring U.S.-based stablecoins, but its “clawback” feature, allowing Ripple to reclaim tokens, worries investors on X.
Please note that RLUSD and XRP are not the same. They are distinct digital assets created by Ripple, with different purposes, characteristics, and use cases. RLUSD is a U.S. dollar-backed stablecoin launched by Ripple in December 2024 on XRP Ledger and Ethereum. Its value is pegged 1:1 to the USD, designed for stability. XRP is Ripple’s native cryptocurrency, launched in 2012 on the XRP Ledger. It’s not pegged to any currency, so its price fluctuates
USDT’s Market Dominance
Tether’s USDT, launched in 2014, leads with an approx $141.7 billion market capitalization. Despite a 21% market cap drop from $83 billion to $65 billion in 2022 after the FTX collapse, USDT remains the top choice for traders due to its high liquidity and presence on exchanges like Binance. However, Tether’s transparency issues, including a 2021 $41 million fine for misleading reserve claims, raise concerns.
The GENIUS Act may pressure Tether to improve audits to maintain its edge.
USDC vs. RLUSD vs. USDT: Key Differences
In this table, we have explained the key differences between RLUSD, USDC, and USDT.
| Feature | USDC | RLUSD | USDT |
|---|---|---|---|
| Issuer | Circle (with Coinbase, 2018) | Ripple (2024) | Tether Limited (2014) |
| Market Cap | $61B (April 2025) | $317M (May 2025) | $141.7B (Feb 2025) |
| Blockchains | 19 (Ethereum, Solana, Algorand, etc.) | XRP Ledger, Ethereum | Ethereum, Tron, Solana, Omni, etc. |
| Transparency | High (monthly audits, MiCA-compliant) | High (real-time audits, NYDFS-approved) | Low (attestations, not full audits) |
| Regulation | Strong (U.S., EU MiCA) | Strong (U.S., GENIUS Act, NYDFS) | Weak (faced fines, scrutiny) |
| Use Case | Trading, payments, DeFi | Cross-border payments | Trading, store of value, DeFi |
| Risks | Banking crises (e.g., SVB 2023) | Clawback feature, low adoption | Transparency issues, regulatory fines |
Also Read – What it will take for XRP to become the next Bitcoin?
USDC leads in transparency and regulatory compliance, with its $61 billion market cap and MiCA approval making it a safe choice for institutions.
RLUSD, at $317 million, is a new player with potential boosted by the GENIUS Act, but its clawback feature and slow adoption limit its reach.
USDT dominates with $141.7 billion and unmatched liquidity, but its transparency issues persist.
The GENIUS Act, passed today, strengthens all three by enforcing 1:1 backing, though USDC and RLUSD benefit more due to their compliance focus. USDC suits global traders, RLUSD targets Ripple’s payment network, and USDT remains the go-to for high-volume trading despite risks
The Bottom Line
USDC, RLUSD, and USDT shape the 2025 stablecoin market, with USDC’s trust, RLUSD’s potential, and USDT’s liquidity. The GENIUS Act’s passage today boosts confidence but favors compliant coins like USDC and RLUSD.
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Disclaimer: This article is for information only, not financial advice. Crypto investments are risky and may lead to losses. Always do your own research and consult a financial advisor before investing.