A recent decision by the New York Department of Financial Services (DFS) has ignited debates within the cryptocurrency community. The DFS’s alterations to its “greenlist” of approved tokens have raised questions about the future of crypto regulation.
New York’s Revised Crypto Approach
The DFS recently unveiled changes to its oversight procedures for virtual currencies. These modifications affect how digital businesses licensed by the DFS can feature various cryptocurrencies.
Among these changes, over two dozen digital tokens, including Ripple (XRP), Dogecoin (DOGE), and Litecoin (LTC), were removed from the DFS’s previously approved “greenlist.” However, well-established cryptocurrencies like Bitcoin and Ethereum remain on the list, along with the addition of the PayPal Dollar.
A Firm Hold on Digital Assets
Despite Congress’s reluctance to enact crypto regulations, the DFS has taken a proactive stance, positioning itself as a leader in overseeing digital assets nationwide. This distinction is partially attributed to its BitLicense program and its specialized virtual currency unit.
While some critics in the crypto sector find fault with the DFS for its licensing process, the latest guidelines demonstrate the organization’s balanced approach to crypto management. This stands in contrast to other state and federal entities that appear more focused on enforcement rather than regulation.
Expert Opinions Chime In
In response to the news, Crypto Wendy O expressed concerns, suggesting potential hidden agendas in the current administration’s approach to crypto regulations. In response, respected lawyer and crypto enthusiast Bill Morgan questioned the importance placed on court rulings versus statements from senior SEC officials, especially concerning the status of certain cryptocurrencies.
Referring to the exclusion of XRP from the greenlist, despite a recent court ruling that it is not a security, Morgan highlighted the inconsistencies in regulatory responses. The DFS’s updated guidelines suggest a broader strategy for overseeing the crypto industry.
Under previous directives, digital businesses operating under the DFS’s virtual currency scheme could gain approval for holding and listing digital tokens through a self-certification process. This streamlined approach ensured that the DFS remained informed and maintained a supervisory role.