New York Department of Financial Services Removes XRP, Dogecoin, and Litecoin from “Greenlist”
In a significant development, the New York Department of Financial Services (NYDFS) has made substantial revisions to its virtual currency framework, resulting in the removal of XRP, Dogecoin, Litecoin, and others from the state’s “greenlist.” The announcement, made late on Monday, marks a pivotal change to the list of approved tokens for DFS-licensed firms.
Previously, the greenlist comprised 25 tokens, including prominent names such as Bitcoin, Ethereum, Dogecoin, Litecoin, XRP, and the emergent PayPal Dollar. However, following the recent overhaul, the roster has been significantly reduced to only eight tokens. Notably, Bitcoin (BTC) and Ethereum (ETH) are the only non-pegged coins on the revised list, which also includes Gemini Dollar (GUSD), GMO JPY (GYEN), GMO USD (ZUSD), Pax Gold (PAXG), Pax Dollar (USDP), and PayPal Dollar (PYUSD).
The DFS spokesperson explained that the changes were made to align with the new general framework for greenlisted coins. In a press release, the department clarified its intent to “clarify” the protocols associated with coin-listing and delisting for regulated entities. This comprehensive revision also includes an escalation in risk assessment norms for coin-listing paradigms and enhanced stipulations for businesses serving the retail sector.
According to Superintendent Adrienne A. Harris, the correspondence provides deeper insights into the department’s stance on the matter. The directive states that virtual currency business entities do not need the department’s prior approval to list coins included on the greenlist unless informed otherwise by the NYDFS. However, entities are required to inform the DFS in advance and have an “approved coin-delisting policy.”
The letter further states that DFS will consider adding a coin to the greenlist if it has demonstrated a historical record consistent with safety and soundness, including broad marketplace adoption, or if it is a stablecoin approved by DFS for issuance in New York by a VC Entity. The letter emphasizes that DFS has complete discretion over the contents of the greenlist, including additions, removals, or any other alterations.
Superintendent Harris has been taking a proactive approach to cryptocurrency oversight, as evidenced by the department’s $100 million settlement with Coinbase in January 2023 to address compliance infrastructure deficiencies. Additionally, the DFS ordered Paxos to stop issuing Binance USD (BUSD) in February this year.
Reactions to the updated framework have been mixed within the crypto space. Pro-XRP lawyer John E Deaton expressed skepticism, stating, “After it was determined NOT to be a security… Yea, this move isn’t political or punitive in nature.” On the other hand, XRP community stalwart Wrathof Kahneman provided clarity, explaining that Ripple did not lose a license in New York, but rather, XRP, the digital asset, was removed from the list.
At press time, XRP was trading at $0.5092.
– New York Department of Financial Services: https://www.dfs.ny.gov/virtual_currency_businesses
– Superintendent Adrienne A. Harris: https://www.dfs.ny.gov/industry_guidance/industry_letters/il20230918_gen_framework_greenlisted_coins
– Coinbase settlement: [source removed]
– Paxos and BUSD: [source removed]
– John E Deaton’s tweet: [source removed]
– XRPUSD chart: [source removed]
(Note: The original article mentioned bitcoinist.com and contained links to the website; these references have been removed in accordance with the rules provided.)
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