Ripple News: Bill Morgan Raises the Red Flag on XRP’s Regulatory Hurdles in New York
The post Ripple News: Bill Morgan Raises the Red Flag on XRP’s Regulatory Hurdles in New York appeared first on Coinpedia Fintech News
In a recent Twitter exchange, an Australian lawyer, Bill Morgan, expressed concerns about the New York Department of Financial Services (NYDFS) removing Ripple’s XRP from its greenlist. The extra layer of regulation could hinder XRP’s practical use in the Empire State, adding a cautionary note to the otherwise straightforward regulations laid out by the NYDFS.
This concern came after a detailed thread by Twitter user WrathofKahneman, who broke down what it means for XRP to be off the greenlist. According to the Twitter thread, the greenlist comprises tokens automatically approved for companies holding a NY BitLicense to transact with.
7. TL;DR. #XRP removal from the NYDFS greenlist adds extra regulatory burden to co’s wanting to use it, and it’s bad press ostensibly suggesting it’s “risky”. Only these high performance tokens on the list can be automatically trusted: pic.twitter.com/DQNbNA4EoL
— WrathofKahneman (@WKahneman) September 19, 2023
WrathofKahneman clarified that the removal doesn’t necessarily spell doom for XRP in New York but will require companies to undergo additional vetting processes.
“Companies can still use off-list tokens, but it requires further vetting by NYDFS and a separate DFS-approved coin listing policy in place,” WrathofKahneman
What Does It Really Mean?
The extra layer of regulation could significantly impact companies unwilling or unable to face added regulatory scrutiny, effectively alienating them from transacting in XRP. This is a point that WrathofKahneman also raised, stating that large companies, trusts, banks, custody firms, and fintechs would still likely pass the higher level of scrutiny.
Morgan and WrathofKahneman agree that the extra paperwork makes XRP look “risky,” which could harm its adoption rate. With stringent regulations, the implicit trust often associated with tokens on the greenlist is questioned for XRP despite its existing track record.
While companies might perceive the removal from the greenlist as a cautionary flag, it is yet to be seen how this will impact XRP’s standing in the broader cryptocurrency ecosystem.
Filed under: Bitcoin - @ September 20, 2023 11:19 am