XRP’s Removal from the NYDFS Greenlist is a Big Deal

Last week, XRP showcased a commendable price surge, increasing its value by over 6%. However, not all news surrounding the cryptocurrency was positive.

NYDFS Updates its Virtual Currency Oversight

The New York Department of Financial Services (NYDFS) made headlines on Monday. They unveiled updates to their virtual currency oversight mechanism. This revision encompassed introducing a fresh set of criteria. These standards dictate how digital enterprises with a license can list different cryptocurrencies.

In this significant shift, NYDFS axed several tokens from their “greenlist.” Ripple’s XRP, Litecoin, and Dogecoin were notable mentions. Before the update, these tokens enjoyed the green light for streamlined listing. Now, they’re noticeably absent.

As of the latest update, a mere eight tokens feature on the NYDFS Greenlist. Industry giants Bitcoin and Ether maintain their spots. The emerging PayPal stablecoin has also found its way onto the list.

Understanding the Greenlist’s Role

For those unfamiliar, the NYDFS’s official website clarifies the Greenlist. In essence, it states:

“The Greenlist on our site signifies coins that the Department endorses. VC Entities can custody or list these without needing a pre-approved coin-listing policy or any other prior consent.”

While the removal raised eyebrows, experts argue there’s minimal cause for concern. John E. Deaton, a renowned pro-Ripple lawyer, weighed in on the situation, remarking:

“Even after the verdict that it’s NOT a security, it remains so. Ripple’s exchange sales don’t make it a security. This decision seems more political than pragmatic.”

Here, Deaton draws attention to Judge Analisa Torres’s recent judgment. She stated that secondary XRP sales aren’t to be viewed as investment contracts.

Looking Ahead

The evolving landscape of cryptocurrency regulations often prompts reactions from industry stakeholders. The NYDFS’s recent amendments underscore this dynamic. 

How these shifts will influence the larger crypto market and its players remains to be seen. With developments like these, staying informed is paramount.

None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website.

JP Buntinx

JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.

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JP Buntinx

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