Ripple's XRP token has been declared not to be a security by Jeremy Hogan, a partner at Hogan & Hogan law firm. Hogan argues that XRP could only be considered a security if it fits the definition of an "investment contract," but the United States Securities and Exchange Commission (SEC) has not demonstrated this in its lawsuit against Ripple. The SEC claims that Ripple illegally sold XRP as an unregistered security, but Ripple argues that it does not constitute an investment contract under the Howey test, established by the U.S. Supreme Court in 1946. Hogan also states that the key issue is whether the SEC can prove an implied or explicit "contract" between Ripple and XRP purchasers relating to their investment, which Hogan claims does not exist.

(By STEPHEN KATTE)