SEC Claims Ripple Didn't Break Securities Laws When Selling XRP. Both Experts Have Concerns

SEC officials argued that previous claims that the agency had found evidence of fraud in Ripple's XRP sales were false.

The agency said it had no insight into the investigation into whether Ripple violated securities laws when selling XRP in exchange for fiat currency. Both experts who spoke to The Block are concerned about the situation.

Tyler Winklevoss, CEO and co-founder of Gemini, said he believes there are still important questions about the value of XRP as an asset. He added that some legal issues may be ignored by regulators.

I question whether the disclosure and terms of sale were reasonable, he said in an interview with The Block. At the moment, I don't know.

Alongside Winklevoss, another expert raised similar concerns about the ambiguity surrounding XRP's status as a security token and its role as a utility token. Their work raises serious concerns, said David Yermack, a professor at New York University and New York University's Stern School of Business.