Binance US has announced it will delist the AMP token after it was deemed a security by the US Securities and Exchange Commission (SEC). Binance US said that the decision to delist the token stemmed from “an abundance of caution” of enforcement by federal regulatory bodies.
Binance US to delist AMP token
On Monday, Binance US published a blog post saying it would halt deposits for the AMP token and eliminate the AMP/USD trading pair on August 15. The move follows legal action from the SEC regarding the token.
In the blog post, Binance US said that in some cases, delisting an asset was the best way to protect the community from risks. It added that with the dynamic nature of the cryptocurrency industry, the exchange’s listing and delisting process was dependent upon developments in the market and regulatory frameworks.
Your capital is at risk.
Binance US said AMP was the only one listed on the platform out of all the nine tokens mentioned in the SEC complaint. The exchange also noted that Amp trading could resume in the future.
The AMP token has declined by 8% during the past 24 hours. At the time of writing, the token was trading at $0.0082. The dip comes from the Binance delisting and concerns over the token’s future.
SEC claims nine cryptocurrencies are securities
The SEC filed a complaint against a former product manager at Coinbase and two other individuals in July. The regulator said that AMP, alongside eight other cryptocurrencies, were “crypto asset securities” within the commission’s regulatory threshold.
In the complaint, the SEC said that a digital token is a crypto asset security if it meets the definition of a security of an investment contract under the Securities Act. Crypto asset securities involve an initial investment of money in a single enterprise with an expectation of profits realized from efforts made by others.
If the SEC chooses to pursue enforcement action against the nine cryptocurrencies classified as securities, other exchanges that have listed the token could delist it and avoid regulatory scrutiny.
Caroline Pham, a Commissioner of the US Commodity Futures Trading Commission, responded to the SEC case, saying that the complaints could have a wider reach and highlight the need for regulators to collaborate and regulate the crypto space.