The New York Department of Financial Services (NYDFS) has updated its approved cryptocurrency list, leading to the removal of Ripple (XRP) and Dogecoin (DOGE) from its greenlist.
This removal has ignited discussions and raised questions about the future of cryptocurrency regulations in the state.
The New York Department of Financial Services (NYDFS) is a regulatory agency in New York responsible for overseeing and regulating financial services, including banks, insurance companies, and cryptocurrencies.
Its main roles include regulation, consumer protection, cybersecurity oversight, and ensuring compliance with state financial laws.
Greenlist, as it is popularly known, is a list of pre-approved cryptocurrencies for exchange or custody by the New York State Department of Financial Services (NYDFS).
The Greenlist was created to provide clarity and transparency to the cryptocurrency industry and to help companies navigate the regulatory landscape.
It includes cryptocurrencies that have met certain criteria, such as having robust anti-money laundering (AML) and know-your-customer (KYC) policies. The NYDFS updates the Greenlist periodically, and the latest update was announced on September 18, 2023.
Although previously included Bitcoin (BTC), Ether (ETH), and several stablecoins issued by Gemini and other companies, the new update has excluded XRP, DOGE, and LTC.
According to DFS, Superintendent Adrienne Harris announced the updated guidance for the green list, which includes stricter standards for evaluating the risk associated with listing and delisting cryptocurrencies.
These standards aim to enhance oversight, particularly for retail consumer-facing businesses.
As part of the updated guidance, DFS-regulated entities are now required to develop and submit coin-delisting policies for approval.
These policies must align with the new guidelines issued by the DFS.
For XRP, the year has been a tough one followed by the long legal battle between Ripple, the parent company, and the SEC.
While XRP was declared to be a non-security, the final decision on the future of the crypto and others that were listed by the SEC as securities are uncertain.
