New York Department of Financial Services (DFS) Restructures Crypto Oversight, Ripple and Dogecoin Axed from “Greenlist”
The New York Department of Financial Services (DFS) has made changes to its approach to cryptocurrency oversight. As a result, digital currencies like Ripple and Dogecoin have been removed from its “greenlist,” while Bitcoin, Ether, and the PayPal Dollar remain on the list.
DFS’s Stance on Crypto Regulation
DFS has positioned itself as a leader in digital asset regulation. Its BitLicense program and virtual currency unit have solidified its status. Despite criticism of its licensing process, DFS’s revised guidance highlights its deliberate strategy in cryptocurrency regulation.
The greenlist previously included 25 tokens, such as Ethereum, Litecoin, and the PayPal Dollar. However, the latest revisions have reduced the number to just eight. Notably, the USDC stablecoin did not make it onto either version of the greenlist.
Regarding the removal of Ripple from the greenlist, John Deaton clarified that it was not a political or punitive decision since Ripple had been determined not to be a security.
The new guidance aims to clarify DFS’s expectations for token-listing and delisting procedures. It introduces higher risk assessment standards for coin listings and additional requirements for businesses targeting retail consumers.
Industry Challenges Amid Regulatory Uncertainty
Under Superintendent Adrienne Harris’s leadership, DFS has demonstrated strict oversight in the crypto sector. For example, Coinbase reached a $100 million settlement with DFS in January 2023 for non-compliance. The following month, DFS directed Paxos to stop issuing its stablecoin BUSD.
Despite its firm approach, many in the US crypto sector respect DFS’s methods. Other regulatory bodies like the Securities and Exchange Commission have been hesitant to formulate regulations for this unpredictable sector. The updated greenlist reflects the challenges that crypto enterprises, especially exchanges, face in the midst of regulatory ambiguity.
Hot Take: DFS’s Revised Approach to Crypto Oversight Reflects Regulatory Ambiguity
The New York Department of Financial Services (DFS) has restructured its cryptocurrency oversight, resulting in the removal of Ripple and Dogecoin from its “greenlist.” While Bitcoin, Ether, and the PayPal Dollar retain their spots, the reduction in the number of tokens on the greenlist highlights DFS’s deliberate strategy in cryptocurrency regulation.
DFS’s new guidance aims to clarify token-listing and delisting procedures and introduces higher risk assessment standards for coin listings. The agency’s strict oversight under Superintendent Adrienne Harris has gained respect from many in the US crypto sector.
However, regulatory ambiguity remains a challenge for crypto enterprises, especially exchanges. The ongoing predicaments faced by the industry underscore the need for clearer regulations to foster innovation and growth in the digital asset space.
By
By
By
