U.S.-based crypto exchange Binance.US said it would remove the Amp token “out of an abundance of caution” from potential enforcement by federal regulators.
In a Monday blog post, Binance.US said it will shut down Amp (AMP) repositories and remove the AMP/USD trading pair on August 15 after the token was mentioned in a lawsuit by the United States Securities and Exchange Commission, or SEC. The federal regulator sued a former Coinbase product manager and two people in July who claimed that AMP and eight other cryptocurrencies were “crypto asset securities” that fell under the jurisdiction of the SEC.
“We believe that in certain circumstances delisting an asset best protects our community from undue risk,” Binance.US said. “We operate in a rapidly changing industry and our listing and delisting processes are designed to respond to market and regulatory changes.”
Important notice from #BinanceUS regarding Amp (AMP)
— 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 that AMP trading “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 subject to scrutiny by the SEC if the regulator chooses to pursue enforcement action.
“The SEC allegations could have broad implications beyond this single case, underscoring how critical and urgent it is for regulators to work together,” said Caroline Pham, commissioner of the United States Commodity Futures Trading Commission, in response to the SEC case.
At the time of publication, the price of AMP had fallen around 6% in the last 24 hours to $0.00874, according to data from CoinMarketCap. However, the RGT price jumped over 55% to a new all-time high of $7.83.