In September 2023, NYDFS reduced the list of pre-approved cryptocurrencies, excluding XRP from it. Lawyer James Murphy demanded that the agency justify the reasons for such a decision. During a recent interview on the Digital Perspectives YouTube channel, Murphy mentioned the latest developments in the court case between Ripple and the U.S. Securities and Exchange Commission (SEC). The lawyer drew attention to the July decision of Judge Annalisa Torres, according to which software sales of XRP are not considered securities.
However, less than two months after Judge Torres' decision, NYDFS removed XRP from its list of cryptocurrencies allowed for trading in New York, Murphy noted. As a result, crypto investors and traders residing in New York cannot access or trade XRP on any platform licensed to operate in the state.
Murphy called the agency's actions illogical, given the fact that the court's ruling partly brought regulatory clarity to XRP. In an attempt to uncover the motives of the NYDFS, Murphy called on the agency to disclose information about the exclusion of XRP from the green list under the US Freedom of Information Act (FOIA).
The lawyer stressed that NYDFS has not yet disclosed the exact reasons for excluding XRP. The Department has already missed two deadlines, another one is scheduled for January 31. Murphy warned that if the agency continues to remain silent, he will sue him.