Binance US Removes Crypto Token ‘Out of Caution’ After SEC Says It’s a Security CryptoBlog

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Binance’s US platform removes the crypto token amp after the Securities and Exchange Commission (SEC) declared it a security. Another crypto exchange, Coinbase, disagreed with the regulator, arguing that the token is not a security.

Binance removes AMP ‘out of an abundance of caution’

The Binance US exchange (Binance US) is taking steps to ensure that crypto tokens that the US Securities and Exchange Commission (SEC) has declared to be securities are not listed on its platform. The SEC recently said in a lawsuit against a former Coinbase product manager that nine crypto tokens are securities. These are AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX and KROM.

Binance US explained:

In its lawsuit, the SEC named nine digital assets that it says are securities. Of these nine tokens, only amp (AMP) is listed on the Binance.US platform.

“Out of an abundance of caution, we have decided to retire the AMP token from Binance.US, effective August 15, 2022,” the crypto exchange announced on Monday.

Binance US clarified that on August 15, AMP deposits on its platform will be closed at 9:00 p.m. EDT and the AMP/USD trading pair will be removed at 11:00 p.m. EDT. “All trade orders will be automatically deleted after trading ends for the trading pair,” the announcement reads.

The exchange clarified that it is taking this step until there is more clarity around the classification of the cryptocurrency, adding that the coin may resume trading at some point in the future.

The price of AMP fell sharply following the announcement of the delisting by Binance US. At the time of writing, AMP is trading at $0.0081411, down 11% in the last 24 hours.

Binance US removes crypto token
AMP price chart on Binance. Source: Binance.com

While Binance US has taken a cautious approach to crypto tokens that may be considered securities by the SEC, Nasdaq-listed cryptocurrency exchange Coinbase has opted to fight the securities regulator.

Following the lawsuit against its former employee, Coinbase published a blog post stating that it does not list any securities. The exchange’s chief legal officer, Paul Grewal, wrote, “Coinbase does not list securities on its platform. End of story.” The executive also criticized the SEC, saying, “Instead of having a dialogue with us about the seven assets on our platform, the SEC went straight to litigation.”

Last week, reports surfaced that the SEC may be investigating Coinbase over its crypto securities listings.

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What are your thoughts on Binance delisting AMP after the SEC says it’s a security? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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