NYDFS Extends Deadline to Rule on XRP Appeal

James Murphy, legal expert at Ludlow Street Advisors, has announced via X (formerly Twitter) that the New York State Department of Financial Services has extended the deadline to rule on his administrative appeal regarding the department's refusal to release documents pertaining to XRP's exclusion from its "greenlist."

New York State Department of Financial Services Extends Deadline for Ruling on XRP Greenlist Appeal

Lawyers representing James Murphy, a legal expert at Ludlow Street Advisors, have submitted an administrative appeal to the New York State Department of Financial Services (NYDFS) regarding the agency's refusal to produce documents pertaining to the exclusion of the XRP token from its "greenlist." The NYDFS has granted an extension for the deadline to rule on the appeal.

The appeal stems from a Freedom of Information (FOI) request filed by Murphy, which sought any documents related to the NYDFS's decision to remove XRP from the greenlist. The NYDFS initially denied the request, prompting Murphy's appeal.

In his appeal, Murphy argues that the NYDFS's decision was arbitrary and capricious and violated the state's Freedom of Information Law (FOIL). He also contends that the agency's refusal to produce any responsive documents is "unprecedented" and undermines the public's right to transparency.

The NYDFS has maintained that its decision to remove XRP from the greenlist was based on a "thorough review" of the facts and the applicable law. However, Murphy argues that the agency has failed to provide any meaningful explanation for its decision.

The XRP token, which was created by Ripple Labs, was previously included on the NYDFS's greenlist, which is a list of digital currency tokens that are considered to be in compliance with the agency's regulatory requirements. However, in October 2022, the NYDFS removed XRP from the greenlist, citing concerns with the token's legal status.

The SEC has alleged that the sale of XRP constitutes an unregistered security offering. Ripple has denied these allegations and has filed a lawsuit against the SEC, arguing that XRP is a utility token rather than a security.

The outcome of the Ripple v. SEC lawsuit is expected to have a significant impact on the future regulation of cryptocurrencies. If the SEC's allegations are upheld, it could lead to increased regulatory scrutiny of XRP and other digital currency tokens.

The NYDFS has not indicated when it will issue a ruling on Murphy's appeal. However, the agency's extension of the deadline for its ruling suggests that it is taking the matter seriously.

Murphy's appeal has attracted attention from the cryptocurrency community, which has been closely following the regulatory developments surrounding XRP. If the NYDFS were to reverse its decision and reinstate XRP to the greenlist, it would be seen as a significant victory for Ripple and a sign of growing regulatory acceptance of the cryptocurrency.