I believe OP is talking about this:
https://youtu.be/m7RNTi1HI3Y?t=259
I was wondering this as well. Basically RI3D 1.0 interpreted the following rule in a pretty optimistic way:
Rope must "consist entirely of flexible, non-metallic fibers twisted, tied, woven, or braided together except for the last 4 in. (~10 cm) of each end which may be whipped, fused, covered in heat shrink or tape, or dipped in a coating material to prevent fraying."
Velcro isn't "heat shrink or tape" nor is it a "coating material to prevent fraying". That kinda makes me think that it's not legal.
That being said, there's a perfectly decent chance that it COULD be legal. It's just really not very clear imo.