The New York State Department of Financial Services (NYDFS) has updated its list of approved cryptocurrencies for custody and listing by licensed entities. The latest revision has removed XRP and Dogecoin from the green list, along with Litecoin and Binance USD.
Ripple’s XRP Takes Another Hit from Regulators
The NYDFS first issued its greenlist in August 2020, as part of its efforts to foster innovation and growth in the crypto industry. The list consists of coins that are pre-approved for custody and listing by entities that have obtained a BitLicense or a limited-purpose trust charter from the regulator.
The list is subject to periodic review and modification by the NYDFS. The removal of XRP and Dogecoin from the green list is a significant blow to the two popular cryptocurrencies, which have been facing regulatory uncertainty and legal challenges in the US.
XRP, the native token of Ripple, is currently embroiled in a lawsuit with the Securities and Exchange Commission (SEC), which alleges that the company and its executives sold unregistered securities worth $1.3 billion. Dogecoin, the meme-inspired coin that has gained a cult following among retail investors, has been criticized for its lack of development and security.
The reasons behind the NYDFS’s decision to delist XRP and Dogecoin are not clear, but some speculate that it may be related to their environmental impact, as both coins use a proof-of-work consensus mechanism that consumes a lot of energy.
The NYDFS has been vocal about its commitment to promoting green finance and addressing climate change risks. It issued a letter to all its regulated entities, urging them to assess and mitigate the environmental impact of their crypto activities.
The NYDFS’s green list currently includes 10 cryptocurrencies for custody and eight for listing. The approved coins for both purposes are Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin Cash, Pax Dollar, Gemini Dollar, and Pax Gold.
