The New York State Department of Financial Services (NYDFS), responsible for creating guiding principles for crypto-related business deals, recently updated its green list, leaving out some popular cryptocurrencies, including XRP.
In the newly released greenlist, crypto assets like XRP, Dogecoin (DOGE), and Litecoin (LTC) were excluded, sparking widespread reactions in the crypto community.
Read Also: Ripple Makes Strategic Hiring In Preparation For XRP ETF
For context, a green list contains commodities that could be traded with no restrictions, and the NYDFS’s recent action implies that there could be constraints in trading XRP, Dogecoin (DOGE), and Litecoin (LTC) in the New York axis.
Did The SEC Pull the String?
Contrary to the claims of the United States Securities and Exchange Commission (SEC), XRP was declared a non-security asset by Judge Torres, a New York federal judge, in July 2023.
Consequent to the above, suspicions on whether the SEC has a hand in XRP’s latest predicament seemed to have set in, with Lawyer James Murphy being at the forefront of those suspecting the SEC for XRP’s recent woes.
Taking to X, Lawyer Murphy, who goes by the pseudonym MetaLawMan on the microblogging platform, shared a video revealing that he already filed a Freedom of Information Act (FOIA), obliging the NYDFS to release every record that might have played a role in the cryptocurrencies delisting.
The reason behind Murphy’s decision to file for FOIA against the New York financial service regulatory body is not far-fetched. Murphy hopes to ascertain if the SEC had influenced the NYDFS decision in a bid to make up for almost losing its lawsuit against Ripple.
The New York Department of Financial Services @NYDFS removed $XRP from its Greenlist AFTER Judge Torres ruled that the XRP token is not a security.
— MetaLawMan (@MetaLawMan) January 25, 2024
I wanted to find out why.
So here’s what I did about it. 👇
(Via @DigPerspectives ) pic.twitter.com/E7rIebpDR0
NYDFS Plays Deaf Ears To Murphy’s FOIA Request
In the shared video making rounds in the crypto sphere, Murphy revealed that the NYDFS has been playing indifferently to the FOIA request.
According to the lawyer, the Department of Financial Services regulatory body had already missed two deadlines before the recent one, which he stated will come up on January 31, 2024.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Ripple CTO Schwartz Says He Chose Ripple Shares Over XRP
Murphy noted that he intends to take legal action should the NYDFS fail to grant the FOIA request before the latest deadline elapses. The lawyer seemed committed to seeing the end of the financial department’s saga with cryptocurrency trading in the United States. He added that he also employed the services of an expert FOIA lawyer.
It is left to see what happens in the future. The crypto community, especially those of the implicated cryptocurrencies, can only hope for the best, as the fight against crypto trading seems to be taking different twists with each passing day.
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