More than two years have passed since the U.S Securities and Exchange Commission (SEC) sued San Francisco-based blockchain payments firm Ripple, throwing many XRP holders into chaos.

But could a breakthrough for Ripple finally be on the horizon?

U.S. Attorney John Deaton has shared more reasons why he thinks the SEC faces a bruising defeat against Ripple.

SEC Accusations Are Stretched Too Far

CryptoLaw founder John Deaton has criticized observers predicting that the SEC will secure victory against Ripple and that the XRP cryptocurrency is doomed. He explained that they are “overstating” the SEC’s chances as the agency’s claims are overstretched.

Deaton cited SEC’s argument about Ripple, alluding that it is a common enterprise. A common enterprise is when the profits of the investor are dependent on the success of third parties or those selling the investment.

Over the course of the courtroom drama, the SEC has been forced by Ripple to admit that holding XRP tokens does not give the investor any rights in the payments company. Moreover, Ripple does not owe XRP holders anything. This indicates that XRP fails the Howey Test as it does not meet the criteria for being considered a security.

The founders of the blockchain payments company Ripple Labs created XRP. Ripple was designed to help banks and other financial institutions move money in real-time and…