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XRP Lawyers Lambast NYDFS For Targeting Ripple, Calling The Action “Political”

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XRP lawyers lambast the New York State Department of Financial Services (NYDFS) for removing XRP from the list of approved coins and stablecoins. Despite Judge Analisa Torres ruling that XRP is not itself a security, even if Ripple sells it on crypto exchanges, the regulators simply seem to avoid it. XRP lawyers assert that regulators are indirectly banning XRP, with a skewed approach.

Ripple has a license in New York, but the NYDFS removed XRP from the approved list of crypto, allowing only to custody digital assets on the approved DFS list.

XRP Lawyer John Deaton Calls the Decision “Political”

John Deaton, a lawyer representing XRP holders, calls the decision by the NYDFS to remove XRP from the approved list of crypto as “political or punitive in nature.” Judge Analisa Torres in a 34-page ruling made it clear that all programmatic sales of XRP are not securities, but institutional sales of XRP by Ripple did constitute unregistered securities.

After a few hours, Deaton posted on X that he will make a big announcement coming this Friday. While he didn’t reveal details, the XRP army speculates a whistleblower coming on CryptoLawTV or a reply to NYDFS.

Lawyer Bill Morgan also criticized the NYDFS’ approach to considering the U.S. SEC view on crypto securities. He is disappointed that US regulators a speech of a senior SEC official about another crypto as more crucial than a ruling that a crypto asset is not itself a security.

Other lawyers also agree with Deaton and Morgan that a court ruling by a judge has less weight than a view by the SEC. The NYDFS allowed only Bitcoin and Ethereum as non-stablecoin crypto for custody and listing. Moreover, stablecoins approved for issuance in New York are Gemini Dollar, GMO JPY, GMO USD, Pax Gold, Pax Dollar, and PayPal Dollar.

XRP price soared nearly 3% in the past 24 hours, with the price currently trading above key support $0.50. The 24-hour low and high are $0.49 and $0.51, respectively. In addition, trading volume increased by 71% in the past 24 hours, indicating interest among traders.

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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