Binance US will delist AMP following SEC claim token is a security

United States-based crypto exchange Binance.US said it will be delisting the AMP token “out of an abundance of caution” of possible enforcement by federal regulators. 

In a Monday blog post, Binance.US said it will be closing deposits of Amp (AMP) and removing the AMP/USD trading pair on Aug. 15 following the token's mention in a legal action from the U.S. Securities and Exchange Commission, or SEC. The federal regulator filed a complaint against a former Coinbase product manager and two individuals in July that claimed that AMP and eight other cryptocurrencies were “crypto asset securities” that fell under the SEC’s purview.

“We believe that, in some circumstances, delisting an asset best protects our community from undue risk,” said Binance.US. “We operate in a rapidly evolving industry and our listing and delisting processes are designed to be responsive to market and regulatory developments.”

Important notice from #BinanceUS regarding Amp (AMP)

Learn more: https://t.co/b8qaeDEORSpic.twitter.com/vqHdvBVHAw

— Binance.US (@BinanceUS) August 1, 2022

According to Binance.US, AMP is the only token of the nine mentioned in the SEC complaint available for trading on the platform. The exchange added trading of AMP “may resume at some point in the future,” but did not provide a date. Other crypto exchanges and companies listing the token as well as Powerledger (POWR), Kromatika (KROM), DFX Finance (DFX), Rally (RLY), Rari Governance Token (RGT), DerivaDAO (DDX), LCX and XYO may also face scrutiny from the SEC if the regulator chooses to pursue enforcement actions.

"The SEC's allegations could have broad implications beyond this single case, underscoring how critical and urgent it is that regulators work together,” said Caroline Pham, commissioner for the U.S. Commodity Futures Trading Commission, in response to the SEC case.

Related: US Congressman blasts SEC for non-judicial actions against crypto companies

At the time of publication, the price of AMP had fallen roughly 6% in the last 24 hours to reach $0.00874, according to data from CoinMarketCap. However, the RGT price surged more than 55% to reach a new all-time high of $7.83.