Binance US Delists Another Crypto That The SEC Claims Is A Security

August 2, 2022 9:41 pm

It seems like the SEC is still not done when it comes to claiming crypto tokens as securities despite the current lawsuit that it has involving XRP.

Binance has just announced that it has made the decision to delist Flexa’s AMP token after the SEC decided to claim that digital asset as a security.

The crypto exchange made the statement that it is trying to remain compliant with the ever changing regulatory landscape within the United States.

As a result, the AMP token will be delisted on August 15 and will remain that way until there is more clarity on whether or not the token is truly a security or not.

DeCrypto.co reports:

The exchange said it is delisting AMP “out of an abundance of caution” effective August 15, adding it is “taking this step now until more clarity exists around the classification” of the token.

The move follows last week’s report that the SEC is investigating America’s largest crypto exchange Coinbase for allegedly letting U.S. residents trade digital assets that should have been registered as securities.

The Commission reported that Coinbase had listed nine cryptocurrencies that were unregistered securities; “of those nine tokens, only Amp (AMP) is listed on the Binance.US platform,” read Binance’s post.

Prior to that the SEC the agency accused one of Coinbase’s former employees of violating the company’s insider trading rules, saying it had determined that nine tokens involved in the case contained “hallmarks of the definition of a security.”

It seems that this AMP token was only one out of 9 different tokens that the SEC had claimed to be a security recently.

How the SEC decided that these 9 tokens were securities out of all the digital assets that are available on the market is still unknown by the crypto community.

As a result of the SEC’s claim, the price of AMP had already declined by roughly 9% in just the past 24 hours.

Whether or not the SEC will be successful in its claim or not is not certain however given its history with past lawsuits.

So far, it is clear that the regulatory environment may potentially continue to become more strict as the SEC continues to enforce its own rules which has faced opposition from Congress before.

DeCrypto.co concludes:

Per Gensler, there’s “no reason to treat the crypto market differently [from the capital market] just because a different technology is used” and that failing to do so would “risk undermining 90 years of securities law.”

Coinbase, however, is denying the exchange has listed unregistered securities.

“We are confident that our rigorous diligence process―a process the SEC has already reviewed―keeps securities off our platform, and we look forward to engaging with the SEC on the matter,” the company’s chief legal officer Paul Grewal said in response to the SEC’s probe.

As of today, The San Francisco-based exchange is still offering AMP trading, as does another major U.S.-based crypto exchange Gemini.

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