New Document: XRP Will be Covered Under MiCA as a “Utility Token”

In a significant confirmation that reinforces XRP’s functional role within blockchain finance, new findings show that XRP will be classified under the European Union’s Markets in Crypto-Assets Regulation (MiCA) as a utility token. This designation not only bolsters Ripple’s ongoing strategy around cross-border payments but also clarifies XRP’s regulatory standing within the EU, one of the most comprehensive jurisdictions for digital asset legislation globally. This development was recently highlighted by prominent analyst SMQKE, who shared documented evidence supporting XRP’s classification. His post, accompanied by visual materials and insightful commentary, underscores the growing clarity around XRP’s regulatory positioning and broader market relevance. XRP’s Functionality and MiCA’s Classification Criteria MiCA defines utility tokens as digital assets that are intended to provide access to a good or service supplied by the issuer. In XRP’s case, the token is not issued for speculative investment purposes but is used as a means of value transmission , particularly within Ripple’s cross-border payment solutions. Yes, XRP will be covered under MiCA as a “utility token.” Documented. https://t.co/N5tjg8Grgw pic.twitter.com/AXCy2JBXrt — SMQKE (@SMQKEDQG) June 5, 2025 This perspective is reinforced by a commentary from Enoch Chng, featured in a discussion on “Technology Risk in Financial Systems.” Chng noted that RippleNet and XRP do not act like traditional currencies or investment tokens. Rather, XRP operates “like an interledger” used to facilitate cross-border payments. “If you look at Ripple in that context, it is more like a utility coin,” he stated, emphasizing XRP’s role in transmitting information and value, not in serving as a speculative asset. This aligns precisely with MiCA’s interpretation, confirming that XRP does not fall into the asset-referenced or e-money token categories that come with stricter compliance and reserve obligations. Instead, its usage model meets the criteria of a utility token, allowing it to benefit from lighter regulatory requirements under the MiCA framework while remaining fully compliant. Ripple’s Strategic Modeling Confirms Utility Use Case Further validation comes from Ripple’s strategic assumptions, as shown in internal modeling shared in a slide presentation titled “Key Assumptions.” Ripple approached XRP “with more of a utility token framework,” calculating its long-term network value using utility-based metrics. The document outlines critical drivers such as total global cross-border payment volume (estimated at $155 trillion in 2018), XRP’s velocity, Ripple’s market share, and the incremental benefit of using XRP versus traditional methods. These inputs serve to demonstrate how XRP’s value accrues not through market speculation but through transactional utility and efficiency gains. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Ripple explicitly states that XRP’s incremental value is tied to “the aggregate incremental value of XRP needed to support the volume of transactions” across its network. This transactional perspective is a hallmark of utility tokens and further aligns XRP with MiCA’s framework . Implications for XRP Holders and Ripple’s Global Operations The confirmation of XRP’s utility classification under MiCA has important implications. First, it legitimizes XRP’s regulatory status in one of the most forward-thinking legal jurisdictions globally. This clarity could encourage increased adoption across Europe, especially among institutional players that require regulatory certainty before integrating crypto solutions. Second, it could position Ripple and XRP as compliant market leaders ahead of many other projects that still face legal ambiguity. As regulatory frameworks tighten globally, this early alignment with MiCA provides Ripple with a competitive advantage and demonstrates its proactive approach to regulation. Lastly, it sends a message to other jurisdictions, including the United States, where XRP has faced legal hurdles. The EU’s decision to treat XRP as a utility token, backed by sound rationale and usage-based classification, could influence how other regulators assess the token’s functionality and legal standing. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post New Document: XRP Will be Covered Under MiCA as a “Utility Token” appeared first on Times Tabloid .

Source: TimesTabloid