- NYDFS undergoes significant changes to its crypto greenlist, removing major coins like XRP, Dogecoin, and Litecoin.
- Bitcoin, Ethereum, and six others remain on the updated list, emphasizing stablecoins and key market players.
Inside the Crypto Greenlist Shuffle
The New York Department of Financial Services (NYDFS) has recently overhauled its virtual currency framework, leading to a significant shift in the crypto landscape. With major coins like XRP, Dogecoin, and Litecoin no longer making the cut, questions arise regarding the future of these coins in the state of New York.
The once expansive list, which initially showcased 25 tokens including titans like Bitcoin, Ethereum, and the emerging PayPal Dollar, has now been slimmed down to a mere eight. The two non-pegged coins that managed to hold their ground are Bitcoin (BTC) and Ethereum (ETH), sharing the limelight with stablecoins like Gemini Dollar (GUSD) and PayPal Dollar (PYUSD).
Understanding the Greenlist Dynamics A representative from DFS clarified this major shift, noting the list’s update was in line with the
“new general framework for greenlisted coins.”
Accompanying the announcement, the department sought to clarify coin-listing and delisting protocols for regulated companies. This includes heightened risk assessment standards for coin-listing procedures and added requirements for businesses catering to the general public.
Superintendent Adrienne A. Harris provided a deeper understanding, explaining that unless otherwise directed by the NYDFS, cryptocurrency businesses don’t require the department’s prior approval to list coins already on the Greenlist. However, these businesses must inform DFS in advance and should adhere to an “approved coin-delisting policy.”
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The guidelines further state that a coin’s addition to the Greenlist would be considered if either the coin or its issuer has a consistent track record highlighting safety, soundness, and customer protection or if the coin is a DFS-approved stablecoin. Importantly, the DFS holds absolute authority over the contents of the greenlist, meaning they can make any changes at their discretion.
Recent actions by Superintendent Harris emphasize the department’s rigorous oversight of the crypto realm. The hefty $100 million settlement with Coinbase in early 2023 stands testament to this commitment. Furthermore, 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, provide a clearer perspective by highlighting that Ripple’s license in NY remains intact; it’s just XRP that was delisted.
In the midst of this reshuffle, at the time of reporting, XRP’s trading value stood at $0.5092.
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