If you remember, the month of May 2018 saw the Securities and Exchange Commission of the United States file lawsuits against the Ripple and Ethereum networks. The beginning of the month of June saw the regulatory body change its view on the Ethereum and Bitcoin network clearly stating that they are not securities. This statement does not mention the Ripple network, clearly meaning that the issue of the crypto being tagged as a security is still on.
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Some crypto enthusiasts have dug up an agreement that was signed by the Economic Crimes Commission of the United States and the Ripple network. The agreement signed by these two can supersede inquiry that has been filed by the SEC. It was reported that in 2015, the Economic Crimes Commission (FinCEN) signed an agreement with the Ripple network allowing them to continue their token sales as at that time. One crypto enthusiasts Richard Holland in a tweet stated that if the FinCEN has signed this agreement with the network, then why is the SEC filing an inquiry into the token sales of the network. He went further to reveal that if indeed the XRP token is a security, that the FinCEN should be called to answer why they signed an agreement with the Ripple network thereby enabling the sale of unlicensed and unregistered securities.
Holland who happens to be a developer of an XRP supported wallet has gone on to reveal the most crucial part of the agreement that was signed by Ripple and the FinCEN. Holland revealed that according to the agreement that was signed, that the US Federal law has bounded Ripple's XRP token as a currency and he went further to reveal that it cannot be a security and a currency at the same time.
Not all crypto enthusiasts are of the opinion that the FinCEN should set the bar for what should be termed a security or a currency, but this evidence that has been brought forward by Holland is one that cannot be brushed outside quickly.
Most experts that are on the side of the Ripple network has further revealed that the XRP does not in any way meet the definition of a security. CEO of Ripple Brad Garlinghouse has stated that whether the Ripple's XRP token is a security or not would not be dictated or mandated by just one law suit filed by the SEC. He went further to state that he and other community members think that the XRP is not a security and that it even exists independently. He stated that the activities of the company does not in any way affect the XRP token and went on to reveal that if by chance the Ripple company shuts down today, that the XRP token would continue to trade on the crypto market.
Other community members and experts have also spoken out, outrightly condemning the lawsuit. They claim that the Ripple's XRP token is not a security if defined properly within the confines of the United States Federal law.