SMQKE’s post emphasized the significance of the excerpt, quoting directly: “At the end of the day, XRP purchasers have bought, effectively, a slice of the future cashflows that Ripple would make from the licensing of its transaction settlement system.” The statement is part of a broader discussion about the relationship between Ripple’s business model and the distribution of XRP tokens.

XRP HOLDERS OWN A SLICE OF RIPPLE’S FUTURE CASHFLOWS

Read closely.

“At the end of the day, XRP purchasers have bought, effectively, a SLICE OF THE FUTURE CASHFLOWS that Ripple would make from the licensing of its transaction settlement system.”

Of course it’s… pic.twitter.com/kADEC1GbRT

— SMQKE (@SMQKEDQG) May 19, 2025

Passage Raises Questions About Security Classification

According to the excerpt, Ripple funds its activities through XRP distributions in exchange for investment capital and labor.

The line suggesting XRP purchasers effectively acquire future cash flows implies a structure similar to that of a security. The passage compares tracking stocks and asset securitizations, stating that such instruments serve effectively the same economic function.

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However, the same excerpt also acknowledges the complexity of categorizing XRP. It notes that Ripple has structured its business in a way that gives it room to argue against the classification of XRP as a security. Specifically, the text mentions that Ripple can claim there are no direct contractual rights between the company and XRP holders and that XRP is used as more than a speculative asset.

Community Reactions Address Legal and Temporal Context

SMQKE’s tweet has been met with skepticism and analysis by other users. One user, Aurelia Isley, remarked, “That would make XRP a security so I doubt this is real we just dealt with a four-year lawsuit about this topic.” Another user, KYCAT, responded, “That’s interesting, however, XRP has already been classified as not a security. What is the date of the article? I suspect it’s pre-court ruling.”

The court ruling likely pertains to the 2023 decision in the SEC v. Ripple Labs case, in which the Judge determined that XRP was not a security. However, some institutional sales were found to be investment contracts. This outcome led to partial regulatory clarity around XRP, implicating how crypto assets are categorized under U.S. securities laws.

The excerpt highlighted by SMQKE is evidence of documented legal commentary suggesting a deeper economic linkage between XRP ownership and Ripple’s licensing revenue. The implications of such a view could reignite debates over the nature of crypto assets and their classification under securities law, particularly in light of recent and ongoing litigation in the digital asset space.

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.

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The post Legal Commentary Spots Economic Link Between XRP and Ripple Revenue appeared first on Times Tabloid.

The new development was recently shared by James K. Filan, the defense lawyer and former federal prosecutor.

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It can be recalled that the SEC filed a motion to request the prohibition of Attorney John Deaton, who represents 67,000 XRP investors, from further participation in the Ripple-SEC case.

According to the report, the Judge has denied the commission’s motion to revoke amici status and bar Deaton from further proceedings. This is seen as another big win for the XRP community members, who have been anticipating the end of the long-standing lawsuit.

James K. Filan tweeted, “BREAKING: Judge Torres denies SEC’s Motion to Revoke amici status and bar @JohnEDeaton1 from further proceedings. Amici can’t participate in expert challenge now but may file application to brief concerns with SEC’s expert at summary judgment.”

#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: Judge Torres denies SEC's Motion to Revoke amici status and bar @JohnEDeaton1 from further proceedings. Amici can't participate in expert challenge now but may file application to brief concerns with SEC's expert at summary judgment pic.twitter.com/fGVf6ZvQma

— James K. Filan 106k (beware of imposters) (@FilanLaw) July 26, 2022

Read Also: CryptoLaw Founder John Deaton Questions SEC for Targeting XRP While Ethereum (ETH) Is Given Free Pass

Reacting to the new development, Fred Rispoli, a supposed member of the XRP community, described the update as a win for Ripple and XRP.

“This is a win for sure. Although J. Torres denied Amici’s request for Daubert participation, the same purpose will be achieved by SJ participation. And although she implicitly denied access to Doody report, SEC already lost that issue re: Daubert motion redactions.”

It should be noted that the latest ruling implies that John Deaton is allowed to stay on the case and retain amici status. He will also be allowed to raise concerns about the regulator’s expert when filing his summary judgment brief.

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The post Breaking: Judge Torres Rules that John Deaton Will Continue To Represent 67,000 XRP Holders in Ripple-SEC Case appeared first on Times Tabloid.