US Lawyer Questions NYDFS Delisting of XRP
In September 2023, the New York Department of Financial Services (NYDFS) removed Ripple’s XRP token from its green list. This decision prompted lawyer James Murphy, who supports Ripple, to demand an explanation from the NYDFS regarding the delisting of XRP.
Investigation into XRP Delisting
Murphy recently discussed the ongoing court case between XRP and the United States Securities and Exchange Commission (SEC) in an interview with Bradley Kimes on the Digital Perspectives YouTube channel. He focused on Judge Analisa Torres’s ruling in July that stated XRP sales were not securities.
Murphy found it puzzling that less than two months after this ruling, the NYDFS removed XRP from its green list. This prevents crypto traders and investors in New York from accessing or trading XRP on licensed platforms in the state.
Seeking Transparency
Murphy filed a Freedom of Information Act (FOIA) request to uncover the reasons behind the delisting. He wants all information related to the decision, including documents, messages, and videos. However, the NYDFS has missed two deadlines for providing this information and has another deadline set for January 31.
If the NYDFS continues to withhold information, Murphy is prepared to take legal action in New York.
Potential External Influence
Murphy suspects that external factors may have influenced the NYDFS’s decision to delist XRP. He has asked for details about any communications between the agency and governmental or federal bodies regarding this decision.
The lawyer aims to determine whether the SEC exerted pressure on the NYDFS to remove XRP from its green list, despite Judge Torres’s ruling that it is not a security.
Murphy believes the delisting is illogical and inconsistent with the court’s decision.
Hot Take: NYDFS’s Lack of Transparency Raises Concerns
The NYDFS’s failure to provide a clear explanation for the delisting of XRP raises concerns about its transparency. Pro-Ripple lawyer James Murphy has taken action by filing a FOIA request, demanding all relevant information. The NYDFS’s missed deadlines have only heightened Murphy’s suspicions, leading him to consider legal action if necessary. The lawyer also questions whether external influences, such as the SEC, played a role in the delisting decision. With regulatory clarity established through Judge Torres’s ruling, the delisting appears contradictory and raises questions about potential ulterior motives.
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