The New York State Department of Financial Services (NYSDF) has approved eight cryptocurrencies for trade and a further 10 for custody by licensed entities in another example of growing acceptance of digital assets in the traditional financial system. The move shows an increasing acceptance of digital assets in the city that did huge damage to the blockchain industry in 2015 when it dropped the BitLicense which precipitated a huge exodus of projects and talent.
NYDSF Reveals Updated List
The NYSDF revealed its updated virtual currencies list last week, with the list populated by stablecoins (with the notable exception of the biggest, USDT) and a few large cap coins, such as Bitcoin, Litecoin, and Ethereum:
This NYDFS update means that businesses and institutions which have proper clearance can now accept these cryptocurrencies, although the agency reserves the right to remove any coin for any reason in the future. It is telling that the only permitted stablecoins are those with existing regulatory clearance in New York, while all the non-stablecoins represent the ‘old guard’ of the crypto space, with only Bitcoin Cash created later than 2016.
One of the more surprising inclusions is Ethereum Classic, which suffered two 51% attacks in a week recently, but clearly the NYDFS isn’t too concerned by these issues and is happy for institutions to offer custody of it.
New York Easing the Burden
New York is one of the most active regulators of Bitcoin and cryptocurrencies in the U.S., being in many ways home to the crypto and blockchain boost of the early 2010s. The introduction of the New York BitLicense by the NYSDF in 2015 sent shockwaves through the industry, causing many to leave the city and the state. However, they have recently shown more consideration for the burgeoning industry – in June they asked for comments on an amendment to the BitLicense which would help smaller crypto-handling companies get regulated.