A months-long upward surge for XRP has definitively concluded. The digital asset is experiencing a sharp decline, a downturn that persists despite a series of significant regulatory victories and technological advancements. This price collapse under intense selling pressure presents a stark contrast to the positive fundamental developments surrounding Ripple and the XRP Ledger.

Market Downturn Overshadows Progress

The broader cryptocurrency market has faced severe headwinds, with total liquidations exceeding $2.5 billion. Within this sell-off, XRP has been among the hardest-hit major assets, registering double-digit percentage losses. This situation highlights a clear divergence: even concrete regulatory clarity and infrastructure upgrades are proving insufficient to buoy the token’s price in the current risk-averse market environment. The upcoming XRP Community Day may offer a catalyst for renewed interest, provided overall market sentiment does not deteriorate further.

Legal Clarity Achieved with SEC Settlement

The protracted legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) reached its final resolution in August 2025. Both parties agreed to withdraw their appeals, allowing the 2023 ruling by Judge Analisa Torres to stand. This ruling distinguished between XRP sales, determining that transactions on public exchanges do not constitute securities offerings, while direct sales to institutional investors do. As part of the settlement, Ripple paid a $125 million penalty.

Stuart Alderoty, Ripple’s Chief Legal Officer, confirmed via social media that the withdrawal of appeals marked “the end” of the case. This definitive legal outcome has opened the door for potential exchange-traded fund (ETF) products based on XRP, with firms including Grayscale, WisdomTree, and Bitwise having already submitted applications to regulators.

European Expansion Secured with Full EMI License

Ripple secured a key regulatory milestone in the European Union on February 2, 2026, obtaining full approval for an Electronic Money Institution (EMI) license in Luxembourg. Granted by the Commission de Surveillance du Secteur Financier (CSSF), this license provides Ripple with “passporting” rights to operate across all 27 member states of the EU.

Should investors sell immediately? Or is it worth buying XRP?

Cassie Craddock, Ripple’s Managing Director for the UK and Europe, stated that this authorization enhances the company’s capacity to expand its compliant blockchain infrastructure throughout the region. The license adds to Ripple’s global portfolio, which now encompasses more than 75 licenses worldwide.

XRP Ledger Activates Key Institutional Feature

A major technical upgrade went live on the XRP Ledger (XRPL) on February 4, 2026, with the activation of “Permissioned Domains.” The enabling amendment, XLS-80, received support from over 91% of network validators. This new functionality creates access-controlled zones within the public XRPL, allowing regulated institutions to operate in defined, compliant environments.

Developers are continuing to build institutional-grade decentralized finance (DeFi) components for the ledger. The roadmap includes:
* The XLS-65/66 lending protocol for pooled and collateralized loans
* Privacy-focused confidential transfers for multi-purpose tokens (scheduled for Q1 2026)
* An Ethereum Virtual Machine (EVM) compatible sidechain, connected via the Axelar network

Ripple Prime Broadens Service Offering

Also announced on February 4, 2026, was an expansion for Ripple Prime, the company’s institutional prime brokerage platform. It now integrates support for Hyperliquid, a leading decentralized derivatives platform. Mike Higgins, CEO of Ripple Prime International, explained that this integration grants institutional clients access to on-chain derivatives liquidity and enables cross-margin trading across all supported asset classes on the platform.

Community Event Scheduled for Global Engagement

In a move to engage directly with its global user base, Ripple has scheduled the XRP Community Day for February 11-12, 2026. The event will feature three live audio sessions on social media, tailored for the EMEA, Americas, and APAC regions. A key participant will be David Schwartz, former Ripple CTO and co-creator of the XRP Ledger, who will field community questions and share his perspective on the evolution of XRP use cases.

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