Binance.US To Remove AMP After SEC Claims It is A Security
According to the latest report, the famous US arm of Binance, Binance.US, made an announcement recently. The announcement follows the claim by the Securities and Exchange Commission that nine tokens are securities.
As a result, Binance.US has decided to remove one of those tokens, the AMP, from its platform. This move is cautious if the agency decides to follow up on the case.
Binance.US To Delist AMP Token On August 15th
On August 1st, Binance.US stated that it wanted to close deposits for the AMP. Also, it would remove the trading pair, AMP/USD, on August 15th.
This is because the token is among the nine tokens listed by the SEC as securities. The agency has filed a lawsuit against an ex-employee at Coinbase and other individuals for selling unregistered securities.
Binance.US stated that:
We believe this is the right step in this situation. Removing an asset is to protect the best interest of our community. The regulatory climate is changing. Hence the addition and removal of tokens would follow regulatory developments.”
Furthermore, Binance.US stated that only AMP is being traded on its platform among the nine tokens the regulator mentioned. However, the exchange firm noted that AMP trading might resume later on in the future.
Meanwhile, Binance.US is the only platform that allows the trading of AMP. Other platforms that allow users to trade the token may end up delisting it.
CFTC Commissioner Tackles The Decision Of The SEC
The other eight tokens mentioned by the SEC include LCX, POWR, RLY, KROM, DFX, RGT, DDX, and XYO. However, the regulatory agency has not taken any enforcement action against all the exchanges that listed these tokens.
Besides Caroline Pham, US Commissioner for the Commodity Futures Trading Commission (CFTC) responded to the claim of the SEC. According to her, this move by SEC is regulation by enforcement.
Additionally, Pham said that this could have widespread implications for other cases. She added that the SEC and the CFTC have to work together to ensure a common ground and classification of these assets.
As of the time of writing, AMP’S trading price has dipped by over 6% in the past 24 hours. According to CoinMarketCap, the token is trading at about $0.00875.
However, the price of RGT has increased by over 55% to a new record of $7.83.
Editorial credit: AevanStock / shutterstock.com
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