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New York regulatory authority approves custody of Ripple (XRP)

  • In a list updated by the New York State Department of Financial Services, Ripple (XRP) was approved for custody by companies, but was not approved for listings.
  • In addition to XRP, eight cryptocurrencies, including Bitcoin, Ethereum and Litecoin, were approved for custody and listing.

The New York State Department of Financial Services (DFS) has issued an updated list of approved cryptocurrencies for custody and listing. The list, which was updated last week, includes 10 cryptocurrencies hat are allowed to be held by New York-based companies and eight cryptocurrencies that may be listed.

The 8 cryptocurrencies approved on the green list for both custody and listing for trading are Binance USD (BUSD), Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Paxos Standard (PAX), Gemini Dollar (GUSD), Litecoin (LTC) and Pax Gold (PAXG). In contrast, Ripple (XRP) and Ethereum Classic (ETC) were approved for custody only and not for listing.

ripple new york

Source: https://www.dfs.ny.gov/apps_and_licensing/virtual_currency_businesses/virtual_currencies

According to DFS, which is also the responsible supervisory authority for the BitLicense, the inclusion in the green list has the following relevance:

Any entity licensed by DFS to conduct virtual currency business activity in New York may use coins on the Greenlist for their approved purpose(s). Note that if a licensed entity decides to use a coin on the Greenlist, it must inform DFS prior to beginning its use.

As the New York authority further explains, there are several ways that companies with virtual currencies can adapt or list virtual currencies: approval of a specific request to DFS for a material change in business; self-certification of a DFS-approved policy for listing coins; and use of virtual currencies already on the green list.

The green list follows a guideline proposed by the New York State Department of Financial Services last December, which includes proposals for the acceptance of coins or listing options that the regulator makes available to crypto-entities.

There is no official information yet on the reasons why Ripple (XRP) has not been approved for listing for trading. However, it seems conceivable that the legal status of XRP and question of whether the token is a security in the sense of the American law is playing a role.

As CNF reported one of the class action lawsuits against Ripple in New York State was recently moved to California, possibly to be consolidated with the oldest of all class actions, with the one of the lead plaintiff Bradley Sostack.

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About Author

Jake Simmons

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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