US: NY Financial Regulator Delays Ruling on XRP ‘Greenlist’ FOIA Appeal

Legal expert James Murphy is seeking transparency from the New York State Department of Financial Services (NYDFS) regarding its decision to remove XRP from its "greenlist" of approved cryptocurrencies. Despite a court ruling that XRP secondary sales are not securities offerings, NYDFS delisted XRP while keeping Ethereum on the greenlist, raising concerns for Murphy. He filed an administrative appeal and is encouraging NYDFS to voluntarily disclose documents related to the decision-making process.

New York Financial Regulator Delays Ruling on Ripple's FOIA Appeal Regarding XRP 'Greenlist' Exclusion

Legal expert James Murphy of Ludlow Street Advisors has taken to Twitter to announce that the New York State Department of Financial Services (NYDFS) has extended its deadline to adjudicate his administrative appeal challenging the department's refusal to release documents pertaining to the exclusion of the XRP cryptocurrency from its "greenlist."

Murphy expressed perplexity over the NYDFS's decision to remove XRP from the greenlist, particularly given the court's determination that secondary sales of XRP did not constitute a security offering. This decision stands in contrast to Ethereum, which has remained on the greenlist despite facing regulatory hurdles.

Consequently, Murphy seeks to ascertain the rationale behind the NYDFS's decision to delist Ripple's XRP.

Earlier this month, Murphy lamented the NYDFS's refusal to produce a single document in response to his Freedom of Information (FOI) request. If his administrative appeal is denied, Murphy intends to initiate legal action against the department for lack of transparency. Nonetheless, he encourages the NYDFS to voluntarily provide the requested records.

In October 2022, the NYDFS updated its guidance on digital currency listings and delistings, resulting in the removal of XRP from the list of pre-approved tokens. Litecoin (LTC) and Dogecoin (DOGE) were also excluded from the greenlist.

Stuart Alderoty, Ripple's chief legal officer, recently emphasized that XRP is the sole cryptocurrency token to achieve regulatory clarity following the company's partial victory against the US Securities and Exchange Commission (SEC) in 2022.

The NYDFS's ongoing delay in responding to Murphy's administrative appeal has raised questions about the department's commitment to transparency and its willingness to support innovation in the digital currency space.