There exists an ongoing debate. The Security and Exchanges Commission (SEC) believes that XRP is a security and not a commodity or other type of asset, as it was generated, distributed, and sold by Ripple Labs.
On the other hand, Ripple believes that treating XRP as security would subject exchanges, market-makers, and other actors in the currency market to lengthy, complicated, and costly regulatory requirements. Ripple also believes that XRP’s real utility lies in its near-instantaneous and seamless settlement in low-cost transactions.