A new academic paper published in May 2025 by Professor James C. Spindler of the University of Texas and released through the William & Mary Law School presents a detailed legal examination of XRP’s economic nature. The analysis asserts that individuals who purchase XRP may be acquiring more than a digital asset; they may, in effect, be aligning themselves with Ripple’s future financial outcomes. This perspective, introduced to the public by independent crypto researcher SMQKE on X, has led to extensive debate within the XRP community. The report brings fresh insight into the ongoing conversation around XRP’s legal and financial status, particularly in light of Ripple’s long-standing conflict with the U.S. Securities and Exchange Commission (SEC). 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 XRP’s Economic Link to Ripple’s Business The central claim of the report is that while XRP does not legally represent a share in Ripple nor grant rights such as dividends or governance participation, its value is closely tied to Ripple’s financial performance. According to Spindler, XRP purchasers are essentially wagering on Ripple’s future revenue, especially revenue generated from its blockchain-based payment solutions. The paper describes this connection as an economic interest, suggesting that XRP serves as a proxy for Ripple’s financial trajectory. However, the paper also acknowledges a critical legal distinction: XRP does not meet the traditional criteria of a security under existing U.S. law. Holders do not receive the legal safeguards or disclosures that are typically mandated for investors in regulated securities. This raises concerns about investor protection and regulatory clarity, positioning XRP in a legal gray area. Functional Utility of XRP Strengthens Ripple’s Defense The report also explores Ripple’s argument that XRP is fundamentally a utility token, not an investment vehicle. Ripple has consistently asserted that the token’s primary purpose is to enable efficient cross-border transactions through its network, particularly on the XRP Ledger and in services such as Ripple Payments. Spindler’s analysis gives merit to this claim, noting that the asset plays a crucial role in enabling system functionality. It is required for transaction fees on the XRPL and is used optionally as a bridge asset in payment corridors. This practical application, the report argues, distinguishes XRP from traditional financial instruments like stocks or bonds that offer passive investment returns. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Potential Regulatory Implications for Tokenized Revenue Models Beyond the case of Ripple, the report considers broader implications for the crypto sector. It posits that if firms begin offering digital tokens that track future earnings, without offering corresponding legal rights, they could potentially bypass conventional financial regulations. While this strategy could offer innovation and new funding models, it also introduces potential regulatory risks and calls for updated oversight frameworks. Still, the report notes that Ripple stands apart from many other crypto entities by operating a business with actual, consistent revenue. This fact adds legitimacy to its model and supports its claim that the token functions within a working economic system rather than serving solely as a speculative asset. Legal Dispute Nears Resolution This academic insight arrives as Ripple and the SEC move toward resolving their long-running legal dispute. Both sides have reportedly agreed to drop pending appeals and are currently seeking court approval to formalize a settlement. A partial ruling in Ripple’s favor in 2023, where the court determined that certain XRP sales did not constitute securities offerings, has already shifted the regulatory outlook in Ripple’s favor. The paper ultimately suggests that while Ripple’s approach may fall outside of traditional financial models, it is grounded in real-world functionality and ongoing business operations, setting it apart from many digital asset offerings in today’s market. 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 Oldest Law School In U.S.: XRP Holders Own a Slice of Ripple’s Future Cashflows appeared first on Times Tabloid .
