Ripple has started of 2026 with some major moves under its belt. Today, Ripple announced it had received preliminary approval for an Electronic Money Institution (EMI) license in Luxembourg. This green light is a major win for the company because it allows Ripple to eventually offer its payment services across all 27 countries in the European Union. By securing this nod from Luxembourg, Ripple is setting itself up to follow the new EU rules called MiCA, which make it easier for tech companies to work with banks throughout Europe.
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How Did XRP’s Price React to the News?
The news of the Luxembourg approval has a direct link to how people value XRP (XRP-USD). Following the announcement, the XRP’s price saw a boost, trading around $2.15 on Wednesday morning. This reflects a nearly 4% jump as investors react to Ripple’s growing list of legal passports to do business globally.
From an economic perspective, every time Ripple gets a new license, it reduces regulatory risk. In the past, the XRP price has struggled because big banks were afraid to use the token without clear rules from the government. Now that Ripple is approved in the UK and has a path forward in the EU, those banks have a safe way to use Ripple’s technology. If more banks start using Ripple’s network to send money, they may use XRP as a bridge to move value quickly, which increases demand for the token.
What Is the Passporting Effect?
The most important part of this news is called passporting. Under the new MiCA rules, once a company is approved in one EU country (like Luxembourg), they can legally operate in all others. This means Ripple doesn’t have to ask every single country for permission separately. For the XRP price, this is a scale catalyst. It means Ripple can suddenly offer its services to millions of new customers and thousands of businesses across Europe all at once, rather than one country at a time.
XRP’s Price Is Also Being Moved by U.S. News
While the Luxembourg news is a local win for Europe, the XRP price is also being moved by news in the United States. Today, the Senate Banking Committee shared a draft of the CLARITY Act, a new law that could treat tokens like XRP similarly to Bitcoin. Between the new EU license and the positive news from Washington, many investors are feeling more confident about holding XRP for the long term. Even though the price still goes up and down with the rest of the crypto market, these legal wins provide a stronger floor for its value.
At the time of writing, XRP is sitting at $2.1378.
