Ripple CTO Schwartz Disputes SEC's XRP Interpretation, Says Agency Treated Token as Security on July 13

On July 13, Ripple CTO Emeritus David Schwartz disputed former SEC official Marc Fagel's claim that the SEC's case targeted only Ripple's sales practices, not XRP itself. According to Schwartz, the SEC applied a broader Howey theory treating XRP holders as partners in a shared venture expecting profits from Ripple's efforts, thereby effectively treating XRP as a security despite conceding it is not a security per se.

Schwartz cited the SEC's complaint and press statements, which repeatedly referred to XRP as the security and described Ripple executives as security holders, contradicting Fagel's interpretation that the violation arose solely from how Ripple sold the token.