In light of recent U.S. regulatory action, the XRP community is considering the significance of the U.S. court decision confirming that XRP is a digital asset and not a security. Also, the New York Department of Financial Services (DFS) has recently stated updates to its supervisory requirements for digital assets.
Among the modifications, DFS established new standards for companies that list various cryptocurrencies as digital assets and are licensed by the government. A report claims that the DFS took more than twenty tokens off of its green list of authorized tokens.
XRP, Dogecoin, and Litecoin (LTC) stand out as notable exclusions from the list. Only eight tokens remain on the new list that satisfy DFS’s requirements. These digital assets include the recently launched PayPal Dollar, Ethereum (ETH), and Bitcoin (BTC).
Bill Morgan Reacts
However, Bill Morgan, a prominent attorney with expertise in XRP, shared his perspective on X (formerly Twitter) in reaction to this development. Morgan highlighted the difference between the consequences of a court ruling that declares a cryptocurrency as non-security and the influence of statements made by high-ranking SEC officials concerning other digital currencies.
The lawyer argued that it appears a federal court ruling “has less weight for other US regulators than a speech of a senior SEC official.”
Reiterating his viewpoint , Morgan highlighted that despite a court ruling favoring XRP’s classification as a non-security asset, the cryptocurrency faced challenges maintaining its listing status.
“You would think a court ruling that XRP is not a security would help get or keep it on this list,” Morgan remarked.
In addition, he noted that the DFS’s updated list indicated that Bitcoin and Ethereum were the only non-stablecoins that were permitted for custody and listing.