XRP Taken Off Regulator Greenlist: Attorney Demands Answers

James Murphy questions NYDFS’s decision to remove XRP from its Greenlist after a federal judge ruled it not a security.

Attorney angry how XRP is being treated.
Created by Kornelija Poderskytė from DailyCoin
  • Lawyer James Murphy has been locked in battle with New York regulators over XRP greenlight delisting.
  • Murphy has suspected external influence in NYDFS’s decision.
  • NYDFS has already missed two deadlines to comply with Murphy’s FOIA request for related documents.

New York attorney James Murphy, known for his expertise in cryptocurrency law, is locked in a battle with the state’s Department of Financial Services (NYDFS) over its decision to remove XRP from its list of approved digital currencies. 

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The NYDFS recently updated its “greenlist,” which guides New York-based businesses dealing with cryptocurrencies. XRP, along with Litecoin and Dogecoin, were unexpectedly removed from the list, raising concerns within the crypto community, especially considering a New York federal judge had just declared XRP not to be a security.

Did the SEC Pressure NYDFS to Delist XRP?

Murphy, also known as “MetaLawMan,” has filed a Freedom of Information Act (FOIA) request, demanding the department disclose all records related to the delisting, which he believes contradicts a recent federal court ruling and lacks transparency.

Murphy’s FOIA request seeks a comprehensive look into the NYDFS’s decision-making process. He wants to see documents, communications, or exchanges that influenced the delisting, focusing on internal deliberations and potential external influences from other government agencies like the Securities and Exchange Commission (SEC)

His primary aim is to determine if the SEC played any role in the NYDFS’s decision, which contradicts the federal court’s ruling.

FOIA Deadlines Missed

The NYDFS has already missed two deadlines to comply with the FOIA request, with the next one set for January 31st, 2024. Murphy has warned of legal action if the department fails to meet this deadline. He has also enlisted the help of a specialist FOIA attorney, signaling his intent to see this through.

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Murphy’s pursuit of transparency extends beyond the specific case of XRP. The inconsistency between the federal court ruling and the NYDFS’s action highlights the often-murky regulatory landscape surrounding cryptocurrencies in the United States, where state and federal authorities can have conflicting views and policies.

On the Flipside

  • The judge’s decision does not apply to all aspects of XRP’s regulation, leaving room for the NYDFS to take separate actions based on other concerns.
  • The NYDFS might point to Ripple’s ongoing legal battle with the SEC as influencing their decision, regardless of the court’s specific ruling on XRP being a security.

Why This Matters

The battle over XRP’s greenlist status represents a critical juncture between cryptocurrency entities and regulatory bodies. The results of this case could shed light on the inner workings of the regulatory process and potentially influence future policies governing digital currencies.

Ripple has scored a minor victory by settling a lawsuit with GCC Exchange over $15 million in XRP transfers. Read here:
Ripple’s $15 Million XRP Case Closed in Amicable Settlement

The SEC demands financial statements and sales contracts from Ripple, but Ripple claims this is excessive. Both sides are dug in, read here:
“Ripple is Wrong”: SEC Rejects Ripple’s “Baseless” Claims

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.