Legal Commentary Spots Economic Link Between XRP and Ripple Revenue

An excerpt from the William & Mary Law Review is gaining attention in the crypto community following a post by crypto researcher SMQKE. The passage, which appears on page 1606 of Volume 66 of the journal, suggests that purchasers of XRP may have, in effect, acquired a portion of Ripple’s anticipated future cash flows generated through licensing its transaction settlement technology. 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. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 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. Follow us on X , Facebook , Telegram , and Google News The post Legal Commentary Spots Economic Link Between XRP and Ripple Revenue appeared first on Times Tabloid .

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