Key Points:
- New York State DFS removes Dogecoin, XRP, Litecoin, Chainlink, and others from its Greenlist.
- Bitcoin and Ethereum remain on the Greenlist, along with select stablecoins.
- DFS retains the authority to modify the list based on safety, adoption, and regulatory compliance.
New York state’s financial regulatory authority has revoked its previous approvals for the majority of digital assets that were once readily accessible to crypto companies.
The New York State Department of Financial Services (DFS) had previously included 24 assets on its “Greenlist” of cryptocurrencies. According to the agency, virtual currency (VC) entities could list or custody assets from the Greenlist without additional regulatory requirements.
The Greenlist operates independently of individual VC entities’ coin-listing policies and their resulting self-certifications.
The DFS has now substantially reduced the number of coins on this list, removing eight tokens, including Ripple (XRP), Dogecoin (DOGE), Litecoin (LTC), and Chainlink (LINK).
Leading cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) still remain on the updated Greenlist. Additionally, stablecoins such as Gemini Dollar (GUSD), GMO JPY (GYEN), GMO USD (ZUSD), Pax Gold (PAXG), Pax Dollar (USDP), and PayPal Dollar (PYUSD) remain approved for use.
The DFS retains the authority to modify the Greenlist as needed, adding or removing coins at its sole discretion. The agency can also make decisions regarding a coin’s use, including limiting or prohibiting it, both before and after a VC entity begins using it. Moreover, the DFS may require VC entities to delist, halt, or impose limitations on activity related to any coin.
Coins can be added to the Greenlist if they demonstrate a track record of safety, soundness, customer protection, and widespread adoption, along with approval from the regulatory authority. The list may also include stablecoins that have received the agency’s approval for issuance.
VC entities wishing to list any of the Greenlisted coins must provide at least a 10-day advance notice to the DFS before offering support. They are also required to have a DFS-approved coin-delisting policy in place.
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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
