XRP is a security

Highly unlikely. There's no ruling yet, but right now, XRP is not and it probably will not be in the future. There is, however, no definitive ruling yet.

In the US, a security includes an investment contract. An investment contract has been defined by the Supreme Court as:

1. an investment of money
2. in a common enterprise
3. with an expectation of profit
4. solely from the efforts of others

This definition of security captures most ICOs because the funds raised from the ICO are pooled to develop the underlying tech or software. It seems highly unlikely to capture xrp and the Ripple Consensus Ledger (RCL).

Source thread by Scott Chamberlain

Taking each limb in turn:

1. Investment of money: Buying XRP means you are investing in the ecosystem of XRP that is part of the ecosystem of Cryptocurrencies.
2. In a common enterprise: Buying XRP is unrelated to Ripple. Ripple is a software company, they happen to own a large stack of XRP. They were not forced to keep XRP in their holdings to maintain a connection with XRP, other than showing a good faith in the future of the digital asset. People invests in the ecosystem of XRP and ecosystem of cryptocurrencies, alongside others who work on the project with dedication because this is open source.
3. Profit: You buy XRP to use the ecosystem of XRP and as investment you hope that the ecosystem of XRP and ecosystem of cryptocurrencies will grow. XRP investors are not granted any of the returns or affected by any profit that is made by Ripple in regards to Ripple selling their products. If an XRP investor makes a profit by creating a product related to the XRP ecosystem, Ripple will not benefit other than how other holders would benefit from the growth of the ecosystem of XRP. Buying XRP does not grant you voting right for XRP or Ripple or any other company working with XRP, it does not give you authority or any rights for any incentives made by products of Ripple or other companies using the XRP ecosystem.
4. Solely on others efforts: The XRP ecosystem is depending on everyone contributing to the ecosystem by, for example, using the ecosystem, investing in the ecosystem, creating products for the ecosystem, expanding the ecosystem by adoption, availability, research and discussions.