New shock for the Empire State’s crypto industry: Ripple’s native token, XRP, is no longer on the NYDFS “green list”. Litecoin and Dogecoin also suffered the same fate. The New York State Department of Financial Services has indeed updated its regulatory framework for digital assets. This change raises questions about its implications for these cryptos concerned.
Several cryptos removed from the Empire State’s “Green List”
The New York State Department of Financial Services (NYDFS) has made significant changes to its crypto regulatory framework. This landmark decision resulted in removal of several cryptos, including XRP, Litecoin (LTC) and Dogecoin (DOGE), from the green list of State.
In the end, there are only 8 tokens left, whereas the list previously had 25. Only the two industry heavyweights, Bitcoin (BTC) and Ethereum (ETH), remained in the list. The others are backed tokens like PayPal’s PYUSD, GMO JPY (GYEN) or Pax Gold (PXYG).
Afterwards, a directive from Adrienne A. HarrisSuperintendent of Financial Services, provides further clarification to this revision.
According to the directive, crypto trading entities (VCs) do not need prior approval from the NYDFS to list tokens included in the green list. However, they must have an approved delisting policy.
The spokesperson for the Department explained that this revision aimed to align “Greenlisted Coins” with the new general framework of approved cryptos. It also includes intensified risk assessment standards for token listing, as well as strengthened requirements for crypto businesses.
Community reactions
Unsurprisingly, these changes have not escaped the attention of the crypto community. The update received mixed reactions.
Some, like pro-XRP attorney John E. Deaton, have expressed skepticism about the ruling on X (Twitter).
This contrasts with the opinion of Wrathof Kahneman, an influential member of the XRP community. He indeed clarified that “Ripple had not lost its license in New York. It was the crypto XRP as a digital asset that was delisted.“
Meanwhile, XRP price is holding around $0.5076 at the time of writing. As for the other cryptos affected, Dogecoin is trading at $0.0627 and Litecoin at $67.54.
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