U.S. Securities and Exchange Commission formally declared nine digital tokens, AMP token being one, as “securities “in its ongoing practice of defining crypto oversight through enforcement actions.
SEC urges crypto exchanges to operate according to securities law.
SEC Chairman Gary Gensler said
“We have rules in our capital markets to safeguard market integrity & protect against fraud & manipulation. If a company builds a crypto market that protects investors & meets the standard of our market regulations, people will more likely have greater confidence in that market.”
The exchange said it carries out this action “out of an abundance of caution.”
We operate in a rapidly evolving industry, and our listing and delisting processes are designed to be responsive to market and regulatory developments.
The exchange added that the token would remain delisted until “more clarity exists around the classification.”
Binance’s U.S. subsidiary announced it would shutter trading for Flexa’s AMP token after the U.S. Securities and Exchange Commission (SEC) identified the asset as security. With the delisting, AMP deposits on Binance.US will close, and the AMP/USD trading pair will also be removed. In addition, it intends to terminate all trade orders after trading ceases for the pair.
“We operate in a rapidly evolving industry, and our listing and delisting processes are designed to be responsive to market and regulatory developments,” Binance US said in a blog post on Monday.
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.
Before that, the SEC 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.”
AMP, which is described as a collateral token offering instant, verifiable assurances for real-world applications, was one of the nine assets the SEC identified as security.
Coinbase pushed back against the U.S. Securities and Exchange Commission’s claims that seven cryptocurrencies listed on the crypto exchange were securities. At the same time, Flexa, the issuer of one of the coins, said the agency hadn’t contacted it.
Daniel C. McCabe, co-founder and chief operating officer at Flexa, wrote to MarketWatch that “while we have serious concerns about the trading behavior on which the SEC’s charges are based, we also have significant questions about the conclusions regarding AMP the SEC has alleged in its complaint. Flexa was not contacted by the SEC regarding its theories, and we expect to engage with the SEC on this matter.”
Meanwhile, AMP’s value has dropped by 46% and trades at $ 0.0081400 CoinMarketCap
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