Binance United States has said that it will be blacklisting the AMP token “out of an abundance of caution” in light of the possibility that federal regulators will enforce their authority.
After the token was mentioned in a legal action brought by the United States Securities and Exchange Commission, or SEC, Binance.US said on Monday that it would stop accepting deposits of Amp (AMP) and will remove the AMP/USD trading pair on August 15. The announcement was made in a blog post.
In July, the U.S. Securities and Exchange Commission (SEC) lodged a lawsuit against a former Coinbase marketing director and two other persons. The complaint asserted that AMP and eight other cryptocurrencies were “crypto asset securities” that fell within the authority of the SEC.
According to Binance, “we feel that, in certain cases, delisting an asset is the best way to safeguard our community from unnecessary danger. We work in an industry that is always changing, and our listing and delisting procedures are intended to be sensitive to market developments and regulatory standards.”
Important notice from #BinanceUS regarding Amp (AMP)
Learn more: https://t.co/b8qaeDEORS pic.twitter.com/vqHdvBVHAw
— Binance.US 🇺🇸 (@BinanceUS) August 1, 2022
According to Binance.US, only AMP, one of the nine tokens referenced in the complaint filed with the SEC, is now available for trade on their platform. The exchange stated that trading of AMP “may restart at some point in the future,” although they could not specify a date for this possibility.
Other Tokens Which May Be affected
If the SEC decides to pursue enforcement actions, additional cryptocurrency exchanges and businesses that list the token, such as Powerledger (POWR), Kromatika (KROM), DFX Finance (DFX), Rally (RLY), Rari Governance Token (RGT), DerivaDAO (DDX), LCX, and XYO, may be subject to additional scrutiny from the regulatory body.
In reaction to the lawsuit brought forth by the SEC, Commissioner Caroline Pham of the United States Commodity Futures Trading Commission stated, “The SEC’s claims might have extensive consequences beyond this one case, highlighting how vital and urgent it is that regulators work together.”
Read my statement on #SEC v. Wahi, regulation by enforcement & #CFTC authority #crypto #digitalassets #DAO pic.twitter.com/xbHvyshx8l
— Caroline D. Pham (@CarolineDPham) July 21, 2022
According to statistics provided by CoinMarketCap, the price of AMP had dropped by almost 6 percent in the last twenty-four hours to hit $0.0084 when this article was published. The price of RGT, on the other hand, increased by more than 55 percent and to a new all-time high of $7.83.
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