XRP Removed from New York Department of Financial Services’ Greenlist
XRP’s price has been performing well, increasing by over 6% in the past week. However, it has been removed from an important list by the New York Department of Financial Services (NYDFS). The NYDFS announced updates to its virtual currency oversight framework, including new criteria for listing cryptocurrencies.
Changes to the Greenlist
The NYDFS has removed several tokens from its “greenlist,” which previously included XRP, Litecoin, and Dogecoin. Currently, there are only eight tokens remaining on the list, including Bitcoin, Ether, and the PayPal stablecoin.
The greenlist is a selection of coins approved by the NYDFS for virtual currency entities to custody or list without prior approval. It provides clarity on which cryptocurrencies can be offered by licensed digital firms.
No Cause for Concern
Despite XRP’s removal from the greenlist, there is no need to worry. Ripple attorney John E. Deaton stated that this move is not political or punitive in nature. He emphasized that XRP is not considered a security and that even if Ripple sells it on exchanges, it still does not qualify as a security.
This aligns with a recent ruling by Judge Analisa Torres, who determined that secondary XRP sales do not constitute investment contracts.
Hot Take: XRP’s Removal Reflects Regulatory Scrutiny
The removal of XRP from the NYDFS greenlist highlights the regulatory scrutiny faced by cryptocurrencies. While XRP’s price remains strong, its exclusion from this list indicates a lack of regulatory approval in New York. This could potentially impact its adoption and use within the state. However, the comments from John E. Deaton provide reassurance that the removal is not a cause for concern, as XRP has been deemed not to be a security. It will be interesting to see how this regulatory development influences the future of XRP and its relationship with financial authorities.
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