- NYDFS’s recent update to its cryptocurrency framework results in a significant shift in the crypto landscape.
- Major coins like XRP, Dogecoin, and Litecoin are no longer part of the Greenlist, raising questions about their future in New York.
The cryptocurrency landscape in New York has undergone a seismic shift following the recent overhaul of the New York Department of Financial Services (NYDFS) virtual currency framework. The ramifications of this transformation are profound, particularly for major coins like XRP, Dogecoin, and Litecoin, which no longer find themselves on the NYDFS’s coveted Greenlist. This development prompts questions about the future of these coins within the state of New York.
The Greenlist, once a comprehensive showcase of 25 tokens that included cryptocurrency titans such as Bitcoin and Ethereum, as well as emerging entrants like the PayPal Dollar, has now been streamlined to a mere eight tokens. The two non-pegged coins that have retained their positions on the list are Bitcoin (BTC) and Ethereum (ETH). They share the spotlight with stablecoins like Gemini Dollar (GUSD) and PayPal Dollar (PYUSD).
A representative from the DFS (Department of Financial Services) clarified that this significant shift aligns with the “new general framework for Greenlisted coins.” Alongside this update, the department aimed to elucidate coin-listing and delisting protocols for regulated companies. This includes the introduction of heightened risk assessment standards for coin-listing procedures and additional requirements for businesses serving the general public.
Superintendent Adrienne A. Harris provided further insights by explaining that, unless directed otherwise by the NYDFS, cryptocurrency businesses do not need prior approval to list coins already on the Greenlist. However, they are required to inform the DFS in advance and adhere to an “approved coin-delisting policy.”
Authority and Oversight
The guidelines also establish that a coin’s inclusion on the Greenlist may be considered if either the coin or its issuer demonstrates a consistent track record of safety, soundness, and customer protection, or if the coin is a DFS-approved stablecoin. Importantly, the NYDFS retains absolute authority over the contents of the Greenlist, enabling them to make changes at their discretion.
Recent actions by Superintendent Harris underscore the department’s unwavering commitment to stringent oversight of the crypto realm. The $100 million settlement with Coinbase in early 2023 serves as a clear testament to this commitment. Additionally, in a significant move, DFS halted Paxos from issuing Binance USD (BUSD) in February of the same year.
The crypto community’s reactions to these sweeping changes have been diverse. While some, like pro-XRP lawyer John E Deaton, view the move with suspicion, others, like XRP enthusiast Wrathof Kahneman, offer a clearer perspective by highlighting that Ripple’s license in New York remains intact; it’s just XRP that has been delisted.
In the midst of this Greenlist reshuffle, at the time of reporting, XRP’s trading value stood at $0.5092.