Binance US takes cover from coming regulations

Binance US delists AMP from its platform as the SEC signals it may classify the token as a security.
Daniel Creech
By Daniel Creech Research Analyst

Binance US, a subsidiary of Binance (the world’s largest cryptocurrency exchange by volume) said it’s delisting the AMP (AMP) token from its U.S. platform. 

By itself, the AMP token isn’t a big deal to the average crypto investor (AMP isn’t in the top 100 cryptocurrencies, in terms of market cap). However, this delisting could be a sign of things to come, depending on how new regulations shake out in the coming months.

As you probably know, crypto is still a “gray area” when it comes to government regulation. In the U.S., it’s still unclear which government agency will have the authority to make the rules for the industry. It might be the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). 

The biggest question has to do with which cryptocurrencies will be classified as securities by regulators…

Reading between the lines… 

Binance said AMP deposits on Binance U.S. and trade orders have ceased as of August 15.

Binance said it’s delisting AMP “out of an abundance of caution.” In other words, it’s worried about AMP being deemed a security, triggering an SEC lawsuit. 

The concerns stem from a recent battle between the SEC and Coinbase (COIN), the biggest U.S. crypto exchange. The SEC filed insider trading charges against former Coinbase employees. In the suit, AMP was mentioned specifically as one of nine cryptocurrencies it classifies as securities. 

For its part, Coinbase said it’s eager to engage with the SEC… and also that it disagrees with AMP being deemed a security. In short, there’s probably a long legal fight ahead… and Binance would rather watch from the sidelines.

Why it matters…

If a lot of cryptocurrencies are deemed securities by the SEC, it will put crypto exchanges and related companies in a tough spot. It will create massive headaches (and extra expenses) for smaller crypto-related companies and projects. And it could result in hundreds of cryptocurrencies being delisted from major exchanges looking to avoid fighting the SEC in court.

Crypto businesses and investors are in waiting mode as they look for clarification on future crypto regulations. It’s a critical issue that every investor should be keeping an eye on.

Daniel Creech
Daniel Creech is a Curzio Research analyst with over a decade of experience. He writes on macro trends, large- and small-cap stocks, and digital securities. He’s a regular contributor to Token Tracker, Curzio Research Advisory, and The Dollar Stock Club.

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