‘For At Least Two Years, XRP and Most Altcoins are Not Securities,’ BTC Proponent Says

Leading crypto voices shrug off setbacks that may result from SEC appealing the recent XRP victory, factoring in the lengthy court processes.

In a recent tweet, Scott Melker, a prominent figure in the crypto space and a renowned Bitcoin proponent, highlighted Ripple’s and XRP’s victory in the legal battle that the crypto industry has closely watched for nearly three years.

Melker argued that the future appears to be on Ripple’s side in response to reports indicating that the US Securities and Exchange Commission (SEC) is considering a potential appeal in the Ripple lawsuit triumph.

“For at least the next two years (appeal and decision) and likely forever, XRP is not a security,” Melker remarked.

Ripple won.

For at least the next two years (appeal and decision) and likely forever, $XRP is not a security.

And neither are most altcoins by the same rationale.

Have fun staying a trader. https://t.co/G4X3ByzOMn

— The Wolf Of All Streets (@scottmelker) July 23, 2023

Furthermore, Melker believes that the rationale that cleared XRP’s non-security status could apply to most altcoins, freeing them from the regulatory shackles of the SEC. 

Melker expressed these beliefs after pro-XRP lawyer John Deaton argued that the SEC appealing the court decision is far from a setback to Ripple or XRP, as The Crypto Basic reported.

Recall that the US regulatory recently hinted at appealing the recent victory granted to Ripple.

Issues Around SEC’s Appeal

Meanwhile, Deaton emphasized that the awaited decision on the appeal would not be made until a considerable two-year timespan, courtesy of the Second Circuit. Until then, the prevailing Judge Torres decision stands as the law.

For context, the core of the matter revolves around the interpretation and application of the third Howey factor in the SEC’s case against Ripple. 

While Deaton predicts that the Second Circuit would unlikely fault the judge’s application of this factor, he highlights a crucial point. The point is that even if the ruling differed, the SEC’s hopes for labeling XRP as a security would not necessarily materialize.

Furthermore, the crypto lawyer underscored the significance of the “common enterprise” factor, which he believes is a formidable challenge for the SEC to surmount, making it a tougher nut to crack than the third factor.

“Don’t let anyone underestimate how significant this win is for XRP and XRPHolders and Ripple,” Deaton remarked.