The New York Department of Financial Services (DFS) has updated its regulations for virtual currencies, altering how licensed digital firms can list cryptocurrencies.
Notably, over two dozen tokens, including XRP, Dogecoin and Litecoin, were removed from the DFS’s approved “green list,” leaving only eight tokens like Bitcoin, Ether, and PayPal Dollar.
In her statement, Superintendent Harris highlighted the intentions behind these changes:
“The proposed guidance for coin-listing and the general framework for greenlisted coins unveiled today build upon the original framework issued by the Department back in 2020. It aims to provide clarity regarding DFS’ expectations concerning the coin-listing and delisting policies of entities regulated by DFS. These enhancements have been formulated through ongoing supervision, and the guidance strives to align best practices across all regulated entities.”
DFS Superintendent Adrienne Harris introduced these changes to raise standards for assessing the risk of listing and delisting cryptocurrencies.
The updated guidance also mandates licensees to create compliant coin-delisting policies and revises the DFS Greenlist and its processes. These changes have sparked controversy and speculation about cryptocurrency regulation’s future impact.
While the new guidelines are intended to bolster oversight, the removal of popular tokens like DOGE and XRP has left users pondering the motivations behind these changes.
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