John Deaton, the legal counsel for over 75,000 XRP token holders in the Ripple vs. SEC litigation, discussed New York developments. He claims that these actions have no “political or punitive” motivations.
The New York Department of Financial Services (DFS) has garnered attention for its recent action of removing Ripple and Dogecoin from its list of approved cryptocurrencies, known as the “greenlist.”
Notably, Bitcoin, Ethereum, and the PayPal Dollar have maintained their legitimacy.
Primarily through initiatives such as the BitLicense program and the virtual currency unit, the DFS has established itself as a pioneering force in digital asset regulation.
Fortune reports that a recent update to the NYDFS’s virtual currency oversight framework introduced new criteria for incorporating crypto assets and removed 25 assets from the greenlist. XRP, DOGE, LTC, and other cryptocurrencies are no longer permitted.
The revised DFS guidance outlines higher standards for risk assessment and imposes requirements on businesses that serve retail consumers.
Despite its stringent approach, the NYDFS has earned the respect of the crypto industry in the United States, which faces ongoing regulatory uncertainty.
Moreover, the DFS has announced intentions to expand its greenlist, which presently consists of eight tokens.
USDC, the second-largest stablecoin by market capitalization, was notably absent from the previous and updated greenlists.
This absence suggests that the token has not received clearance for exchange listings and may be subject to NYDFS scrutiny, similar to XRP’s delisting when the SEC initially submitted its lawsuit against Ripple.
In an intriguing turn of events, John Deaton has also alluded to an upcoming announcement, leaving the nature of this disclosure a mystery and raising concerns about its potential connection to the ongoing XRP lawsuit.
