Binance US Delists AMP As SEC Labels It a "Security"
But mentions that trading of AMP may resume at some point in the future.
As a result of the decision by the SEC to label cryptocurrency AMP a security, Binance U.S. announced that it will be delisting the token come August 15. Following the news and at the time of writing, AMP is down nearly 7% according to data provided by CoinMarketCap.
Important notice from #BinanceUS regarding Amp (AMP)
— Binance.US ?? (@BinanceUS) August 1, 2022
The SEC has been cracking down on digital assets and working to position itself as a key regulator for the industry. Recently, its Chair Gary Gensler, said that the only crypto he would view as a commodity is Bitcoin — stating that the rest in his opinion are securities as they fall under the Howey test.
Of all the regulatory parties in the U.S., the SEC and CFTC seem to be the top contenders as head regulators for the digital asset space. Others that have differing views on regulation include the FTC and DOJ. The differing opinion in asset classification between the SEC and the DOJ can be seen as the current Coinbase news unfolds, where a former employee was alleged to have participated in insider trading. The outcome of this case will be crucial, as the SEC was quick to imply “illegal securities trading” as a charge, whereas the DOJ charged the accused with “wire fraud.”
Binance’s decision to remove AMP was a direct result of the SEC naming the token a security in charge against the former Coinbase employee. An additional eight crypto tokens were named in the charge, however, AMP is the only one listed on Binance.
The exchange said that it is focused on being a customer and compliance-first business and that it will remove the token out of caution — but that it may re-list the token in the future as regulatory law continues to develop.