Prominent pro-crypto lawyer James Murphy, “MetaLawMan”, has announced plans to sue the New York Department of Financial Services (NYDFS) for refusing to clarify the reason behind XRP’s removal from its Greenlist.
The attorney’s announcement on X Tuesday follows the NYDFS’s failure to provide any information surrounding the decision to delist XRP from the Greenlist last September.
“The NYDFS has refused to produce a single document in response to my FOIL request. Last week, I initiated an administrative appeal of this decision with the DFS,” Murphy Tweeted.
The lawyer, who has vowed to tackle the case “better tactically if [he] Lone Rangers” further revealed he expects that the administrative appeal of the decision with the DFS, will be rejected in the next week or two, prompting his next step.
“My next step will be to sue DFS in New York State court to press my request for some transparency around DFS’s decision to delist $XRP after Judge Torres ruled the token is not a security,” he emphasized.
Murphy’s a Freedom of Information Act (FOIA) request, filed in January, aimed to clarify the reasons behind the NYDFS’s decision to delist XRP alongside Litecoin, and Dogecoin from its Greenlist.
The removal of XRP from the Greenlist implies that licensed entities in New York can no longer custody or offer services related to the asset without individual approval. Such removal typically occurs due to regulatory concerns, asset status changes, or factors relevant to consumer protection and financial stability. However, the NYDFS has not disclosed the specific reason for XRP’s delisting.
Notably, the removal of XRP from the Greenlist occurred two months after Judge Analisa Torres declared XRP a non-security in the Ripple vs. SEC case last July, causing confusion and frustration for the XRP army. Meanwhile, amid Murphy’s quest for legal clarity, the community fears that XRP, Ripple’s native token, could face further price declines due to ongoing developments in the SEC vs. Ripple lawsuit.
On Tuesday, Ripple’s Chief Legal Officer accused the SEC of “bad faith” practices, alleging the SEC cited a misleading default judgment in their legal battle with Binance. Investors await a pivotal ruling in the SEC vs. Coinbase case, where Coinbase seeks dismissal, challenging the SEC’s authority over exchanges.
A settlement in this case could significantly influence the SEC’s strategic approach and pending appeal against the ruling on programmatic sales, which would be advantageous for XRP and the wider cryptocurrency market.
