In September 2023, the NYDFS removed XRP from its list of pre-approved cryptocurrencies, prompting Murphy to demand a justification for this move. During a recent interview on the Digital Perspectives YouTube channel, Murphy highlighted the latest legal developments between Ripple and the US Securities and Exchange Commission (SEC). He specifically pointed to Judge Analisa Torres’ ruling in July, which stated that programmatic sales of XRP were not classified as securities.
Murphy highlighted the irony of the NYDFS’s decision, especially considering the court’s ruling, which brought some form of regulatory clarity surrounding XRP. Since the exclusion, crypto investors and traders residing in New York have been unable to access or trade XRP on any licensed platform operating within the state.
Murphy termed the department’s actions as illogical and called on the agency to disclose information about the removal of XRP from the US Freedom of Information Act (FOIA) green list. He suggested that external factors may have influenced the decision and demanded full disclosure of any interactions between the NYDFS and federal agencies, specifically investigating whether the SEC exerted any pressure or influence to delist XRP.
“I would like NYDFS to provide every document, piece of paper, text message, voicemail, video chat, and everything related to the decision to de-greenlist XRP,” Murphy stated.
Murphy highlighted that the NYDFS has failed to provide specific reasons for the exclusion of XRP and has missed two deadlines to do so, with the next deadline set for January 31. He warned that if the agency continues to remain silent, legal action will be pursued.
Similarly, John Deaton, another American attorney specializing in protecting cryptocurrency companies, has also lodged a complaint with the SEC, citing their allowance of payments in memcoins while prohibiting XRP.