Ripple Labs previously filed a Freedom of Information Act request with the SEC regarding Bitcoin’s security assets. Ripple Labs believe XRP tokens aren’t considered a legal currency, which means XRP tokens shouldn’t qualify as securities. The SEC believes Ripple gained more than one billion dollars in assets by trading XRP tokens, allegedly dating back to 2013. Mary Jo White publically stated her advocacy for Ripple Labs, disagreeing with the SEC’s lawsuit. Mary Jo White doesn’t think the SEC is operating within its bounds and is pushing Ripple Labs to fight back.
In the virtual court hearing, Ripple’s representatives brought forth three essential questions to the SEC. The first question Mary Jo White thinks the SEC should address is when digital assets meet the categorization criteria as security or currency. Fiat currencies are backed by a standard value, which is something lacking within the crypto market. Crypto transactions take place on blockchain platforms that aren’t regulated by external banking systems. Fiat currencies are considered legal tender because a base value backs them. Since XRP isn’t a secured currency, it shouldn’t be legally considered as a security.