On Monday, the New York Department of Financial Services announced an update to its virtual currency oversight regime, including new criteria for how digital firms licensed by the agency can list different cryptocurrencies. As part of the revamp, DFS removed over two dozen tokens from its "greenlist" of approved tokens, including Ripple, Dogecoin, and Litecoin. Eight tokens are still on the list, including Bitcoin, Ether, and the new PayPal Dollar.
As Congress continues to drag its feet on crypto regulation, DFS has established itself as a nation-leading digital asset supervisor thanks to its BitLicense program and virtual currency unit. While the crypto industry frequently critiques the department for its laborious licensing process, the new guidance demonstrates DFS' measured approach to crypto regulation, as other state and federal agencies opt for enforcement actions.
