AMP, the native token of the Amp blockchain, has extended losses following news that the US arm of a major crypto exchange would delist the coin due to the Securities and Exchange Commission (SEC) ‘s claim that it is a security.
At 13:02 UTC, AMP is trading at USD 0.00812, down 10% in a day. It’s also down 4% in a week, 11% in a month, 88% in a year, and 93% since its June 2021 all-time high.
AMP 1Y price chart. Source: coingecko.com
Binance.US announced that it would delist the AMP token “out of an abundance of caution” after the SEC alleged AMP was security last month in an investigation against a US-based crypto exchange. As reported, Coinbase has refuted the claim.
“Last week, the [SEC] filed securities fraud charges against a former employee of Coinbase, among others,” Binance.US said. “In its suit, the SEC named nine digital assets that it alleges are securities. Of those nine tokens, only Amp (AMP) is listed on the Binance.US platform.”
The exchange added that the delisting would go into effect on August 15, 2022, adding that trading of AMP may resume at some point in the future once there is more clarity around the classification of AMP.
Per its website, Amp is an “extensible platform” that can be used to collateralize asset transfers. At the same time, AMP is “a universal collateral token designed to facilitate fast and efficient transfers for any real-world application.” The team behind it claims that the coin “provides speed without compromising on security.”
Meanwhile, Lee Reiners, executive director of the Global Financial Markets Center at Duke University, told Roll Call that he does not see the SEC filing complaints against exchanges until a court has weighed in on whether the tokens in question are, in fact, securities.
“They’ll wait, and then if the court agrees with them, of course, at that point, the exchanges themselves will be forced to register,” Reiners said.
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