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With the GENIUS Act now officially passed, pro-XRP attorney John Deaton has released a new report analyzing which blockchain projects, including Ripple and Ethereum, stand to gain the most. While Ripple’s Stablecoin, RLUSD, and Circle’s USDC are highlighted as potential beneficiaries of this landmark legislation, the report suggests that Ethereum is poised to be the biggest winner overall. 

GENIUS Act To Favor Ethereum Over Ripple

In a recently released statement on the X social media platform on July 3, Deaton weighed in on the implications of the recently signed GENIUS Act. While Ripple and Circle have drawn much attention as the likely front-runners under the legislation, the pro-crypto attorney contends that Ethereum is set to benefit the most from the new regulatory framework compared to other blockchains.

The GENIUS Act, which stands for Government Encouragement of National Innovation and Upliftment of Startups, aims to provide regulatory clarity for digital assets and stablecoins operating within the US market. This new legislation is being widely viewed as a turning point for crypto projects and a historical moment for the industry. 

Deaton acknowledged the broader consensus that Ripple, with its recently introduced stablecoin, RLUSD, and Circle, the issuer of USDC, would benefit significantly from the regulatory clarity established by the GENIUS Act. However, he emphasized that Ethereum is even more uniquely positioned to capitalize on the provisions of the legislation due to its long-standing infrastructure and its deep connection to stablecoins.

In his view, influential Ethereum advocates such as AK_EtherMachine, Fundstrat, and Ethereum co-founder Joseph Lubin have the strategic leverage and regulatory foresight to steer the blockchain network into a dominant role within the compliant US crypto ecosystem. Deaton further pointed to growing momentum behind Ethereum-compatible initiatives, including discussions by Padro Ardoino and Tether about introducing a US-based version of the UDST stablecoin. These developments suggest a broader industry pivot toward crypto compliance and innovation within US borders, alongside a renewed focus on Ethereum’s foundational role in powering stablecoins. 

Notably, Deaton’s remarks come at a time when clear regulations continue to be a decisive factor in determining which blockchain networks and cryptocurrencies thrive in the evolving market. While Ripple has long championed regulatory transparency, especially through its ongoing legal battles with the US SEC, Ethereum’s flexible and developer-friendly network may offer a more scalable way to meet US-centered compliance standards. 

Ethereum And XRP Prices Slide Despite Policy Momentum

Despite renewed optimism and positive sentiment fueled by the GENIUS Act, the prices of Ethereum and XRP have retraced. According to data from CoinMarketCap, ETH‘s price surged over 40% in the past month. However, in this past week alone, the leading altcoin dropped nearly 9% and is now trading at $3,548. 

XRP has also experienced a pullback after rallying above $3. While it recorded a 34.8% increase over the past month, the cryptocurrency crashed by 8.33% this week. Now, XRP is teetering between $2.8 and $3 as it struggles to break through former support levels.

Featured image from Getty Images, chart from Tradingview.com

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• Genius Group plans to split lawsuit wins between shareholder dividends and Bitcoin.
• The company is pursuing two lawsuits seeking over $1 billion in shareholder-related damages.
• Genius Group’s current BTC holdings stand at 100 BTC and it now targets 1,000 BTC as part of its treasury plan.

Singapore-based edtech firm Genius Group has unveiled an ambitious plan to share potential legal windfalls from its ongoing billion-dollar lawsuits with shareholders while simultaneously deepening its investment in Bitcoin.

In a move that could reshape the company’s financial future, the Board of Directors has approved a distribution framework that will allocate all net proceeds from its legal battles equally between direct payouts to shareholders and purchases of Bitcoin for its corporate treasury.

50% of legal wins go to $GNS shareholders as special dividend, 50% to $BTC Bitcoin Treasury. No guarantee how much we recover, but in a utopian alternate universe where justice prevails $1B damages = $7/share dividend + 5,000 $BTC.

In a Saylor double alternate universe where… pic.twitter.com/x3sNg4UaoK

— Roger James Hamilton (@rogerhamilton) June 26, 2025

This strategy marks a bold fusion of legal recourse and crypto investment, driven by a promise to compensate shareholders for damages the company alleges were inflicted by third-party misconduct.

Genius Group is pursuing lawsuits seeking over $1B in damages

Genius Group is actively pursuing two major lawsuits with combined damage claims exceeding $1 billion, each targeting different alleged abuses that the company says have harmed its investors.

The first lawsuit, already filed in the US District Court for the Southern District of Florida, alleges violations under the Racketeer Influenced and Corrupt Organizations Act (RICO) and seeks over $750 million in damages from several individuals, including Peter Ritz, Michael Moe, Michael Carter, and former SEC Chairman John Clayton.

According to the company, these defendants, through their roles in LZGI International and related entities, engaged in actions that caused direct financial harm to Genius Group and its shareholders.

The second lawsuit, which is expected to be filed soon, focuses on alleged naked short-selling and spoofing activities that the company claims manipulated the trading of its shares.

Led by attorney Wes Christian, a well-known legal figure in financial market litigation, the short-selling case is estimated to involve damages between $251 million and $263 million, with that figure expected to rise following further analysis of 2024 and 2025 trading data.

A windfall for shareholders, if lawsuits succeed

Genius Group has committed to splitting all net proceeds from these lawsuits evenly, with 50% allocated as special dividends to shareholders and the remaining 50% used to acquire Bitcoin.

Chief Executive Officer Roger Hamilton emphasised that because these lawsuits seek to recover damages that directly affected shareholders, it is only fair that all recovered funds be returned to them or reinvested on their behalf.

If the company is successful in both cases, each shareholder could receive up to $7 per share, offering a substantial return given the company’s current stock price.

While there is no guarantee of a win in either lawsuit, the prospect of a significant payout and further crypto investment has drawn growing attention from retail traders and crypto enthusiasts alike.

Genius Group’s Bitcoin strategy

Genius Group’s interest in Bitcoin is not new, but the recent announcement reinforces the company’s serious intention to use BTC as a long-term treasury asset.

Just last week, the company revealed that it had increased its corporate Bitcoin holdings by 52%, acquiring an additional 34 BTC to bring its total to 100 BTC.

The purchases were made at an average price of approximately $100,600 per Bitcoin, amounting to an investment of more than $10 million.

The company has stated that it intends to grow its Bitcoin holdings to 1,000 BTC over time, especially now that a previous US court restriction barring it from using investor funds to buy crypto has been lifted.

Hamilton has framed Bitcoin as both a hedge against inflation and a vehicle for shareholder value, noting that future court winnings would also be subject to this new distribution model.

Legal uncertainties remain

Despite the company’s confidence, Hamilton acknowledged that there are legal uncertainties ahead, and no outcome can be guaranteed in either case.

However, the aggressive dual-pronged strategy of rewarding investors while reinforcing a decentralised financial position has attracted renewed investor interest.

This legal-crypto hybrid approach positions Genius Group as one of the few publicly traded companies tying shareholder dividends directly to potential lawsuit wins and Bitcoin acquisitions.

As the cases proceed, both traders and shareholders will be watching closely, not just for court rulings but also for how Genius executes its promise to merge traditional legal settlements with modern digital asset strategies.

Genius Group, a Singapore-based education and technology company, must sell its Bitcoin holdings following a US court order. The decision is part of its legal dispute that has blocked the company from raising funds, issuing shares, or making further Bitcoin purchases. 

The Genius Group Lawsuit

In a major development, a United States court ruling has placed strict financial restrictions on Genius Group, preventing it from issuing shares or raising capital. 

The firm’s announcement shows that the American District Court for the Southern District of New York approved a preliminary injunction halting its ability to generate revenue through stock sales.

The dispute was a precedent from a collapsed agreement between Genius Group and Fatbrain AI. Genius attempted to cancel a deal with Fatbrain AI, leading to fraud accusations from shareholders and an SEC investigation. 

The legal dispute, as described by the firm, has now come with a Temporary Restraining Order (TRO), blocking access to investor funds and forcing the company to start selling its Bitcoin holdings.

Reports indicate that Moe and Ritz were accused of orchestrating a scheme to extort millions from Genius Group by misusing legal processes, including the Temporary Restraining Order (TRO) and Preliminary Injunction (PI). On February 14, 2025, they filed for a TRO and PI to prevent Genius from selling any shares, raising funds, or utilizing its $150 million ATM funding, specifically blocking the purchase of Bitcoin. 

As a result, the court placed a temporary restraining order on Genius Group, blocking access to investor funds and forcing the company to begin selling its Bitcoin holdings.

Unfortunately, Genius Group said its BTC reserves have dropped from 440 BTC to 430 BTC. If the legal battle continues, potential sales may follow. Since the ruling, Genius’ share price has dropped 53% from $0.47 to $0.22, and the Company’s market capitalization is currently 40% of the value of its Bitcoin Treasury.

Genius Group Bitcoin Pivot and Related Firms

Genius Group is one of the growing number of corporate institutions investing in Bitcoin. In November 2024, the Genius Group implemented a bold Bitcoin-first strategy, allocating Bitcoin as its treasury reserve asset.

Chief Executive Officer Roger James Hamilton has advocated for Bitcoin, positioning Genius Group as a Bitcoin-first company. The company adopted cryptocurrency as a financial strategy, borrowing MicroStrategy’s BTC playbook. 

Earlier, it approved a $33 million rights offering to buy BTC. However, the court order may force it to change its approach to Bitcoin acquisition.

Firms like Strategy, Metaplanet, and Tesla have added Bitcoin to their balance sheets, seeing it as a hedge against inflation and economic uncertainty. Strategy has been more aggressive with its Bitcoin acquisition campaign. Recently, MicroStrategy acquired 22,048 BTC for $1.92 billion at an average price of $86,969 per Bitcoin.

Should Pro-Bitcoin Firms be Concerned?

Meanwhile, the legal case against Genius Group raises concerns for other companies holding Bitcoin. 

While firms like MicroStrategy continue to accumulate Bitcoin, Genius Group’s case shows the legal risks involved. Many experts believe that as long as an organization adheres to the stipulated guidelines set by the authorities, there is nothing to fear regarding lawsuits. 

While this may not have been the case with the previous administration, the current US SEC leadership has maintained a largely pro-crypto stance.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.