XRP is not a security. QED.

The tests for being a security boil down to 2 things: (1) does possession of the asset entitle you to interest payments? XRP — NO. (2) does possession of the asset give you an ownership right of any kind in the company? XRP — NO. Now, what’s alleged? (1) Ripple company has “promoted” the XRP currency. (2) Ripple the company (effectively) controls the supply of the XRP currency. (3) Ripple the company is essential to the value and operational functionality of the XRP currency. Whether all these points are strictly true or not is immaterial. This is what is alleged. Now consider: (1) Apple Computer “promotes” the iPhone. (2) Apple Computer (effectively) controls the supply of iPhones. (3) Apple Computer systems and infrastructure is essential to the value and use of the iPhone. Now: Does owning an iPhone entitle you to interest payments from Apple Computer? NO. Does owning an iPhone give you ownership right of any kind in Apple Computer? NO. XRP is not a security. QED.

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