- XRP’s classification as a digital asset remains under scrutiny amid NYDFS’s regulatory changes.
- Over two dozen tokens, including XRP, were removed from NYDFS’s approved list.
- Pro-XRP lawyer Bill Morgan raises concerns over the weight of court rulings in crypto regulation.
The XRP community is pondering the essence of the U.S. court ruling affirming that XRP is a digital asset, not a security, amid recent action from the U.S. regulatory landscape. In particular, the New York Department of Financial Services (DFS) has recently outlined updates to its digital asset oversight regulations.
Among the changes, DFS introduced new criteria for digital asset firms licensed by the agency to list various cryptocurrencies. According to a report, the DFS removed over two dozen tokens from its green checklist of approved tokens.
Notable exclusions from the list include XRP, Dogecoin, and Litecoin (LTC). The revised list now features only eight tokens that meet DFS’s criteria. These digital assets are Bitcoin (BTC), Ethereum (ETH), and the new PayPal (NASDAQ:PYPL) Dollar.
Prominent pro-XRP lawyer Bill Morgan weighed in on this development, expressing his views on X (formerly Twitter). Morgan pointed out the disparity between the impact of a court ruling affirming that a cryptocurrency is not a security and the influence of statements made by senior SEC officials regarding other cryptocurrencies.
The lawyer argued that it appears a federal court ruling “has less weight for other US regulators than a speech of a senior SEC official.”
I guess that a court ruling by a judge that a crypto asset is not itself a security has less weight for other US regulators than a speech of a senior SEC official about another crypto that the SEC itself disowned as expressing its official position. https://t.co/egtsIZXy8U— bill morgan (@Belisarius2020) September 19, 2023
Moreover, Morgan highlighted that despite a court ruling favoring XRP’s classification as a non-security asset, the cryptocurrency faced challenges maintaining its listing status.
“You would think a court ruling that XRP is not a security would help get or keep it on this list,” Morgan remarked. Also, he pointed out that, according to the DFS’s revised list, the only non-stablecoins authorized for custody and listing were Bitcoin and Ethereum.
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