Attorney John Deaton, who supports XRP, has argued that regardless of whether Ripple sold the token as an investment contract, XRP should not be considered a security. He also highlighted that many investors purchased XRP without knowledge of Ripple. However, if Ripple had direct involvement in the sale of XRP to an investor, the SEC could argue that the Howey test was met, which determines whether an investment is a security. Deaton expressed confidence that Judge Analisa Torres will address the matter of XRP’s security status in her forthcoming ruling in the ongoing lawsuit between Ripple and the SEC.

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