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Binance.US will delist AMP from its platform following the Security and Exchange Commission’s (SEC) decision to class the asset as a security.
The Commission’s ruling formed the basis of an insider trading case against a former Coinbase staff and two others.
In a blog post, Binance.US explained that removing AMP is an indication that the exchange is regulatory compliant in a fast-paced industry. The exchange added that although AMP may have passed all the necessary due diligence before listing, it was subject to “regular supplementary reviews.”
“We operate in a rapidly evolving industry and our listing and delisting processes are designed to be responsive to market and regulatory developments,” read the post.
Following the SEC’s stance, Binance.US stated that all AMP deposits and the AMP/USD trading pair will be removed. The exchange conceded that after the regulatory dust settles, “trading of AMP may resume at some point in the future” on the platform.
Binance.US only listed one asset deemed a security
Last month, the SEC took an ex-Coinbase employee and two others to court on charges of insider trading. Part of the charges leveled against the accused were claims that they traded unregistered securities on the Coinbase platform with insider knowledge.
Nine virtual assets were designated as securities by the SEC including AMP, Rally (RLY), DerivaDAO (DDX), and Powerledger (POWR). Out of the nine, Binance.US had only listed AMP with the move expected to put the exchange in the good books of the regulator.
“We welcome thoughtful regulation that increases clarity and trust and allows American innovation and leadership in crypto and its associated technologies to flourish,” read the statement.
More digital assets to be tagged as securities
The SEC has not hidden its intentions to exercise control over the digital assets industry, making bold claims that several assets are securities. The regulator is banking on the Howey test established by the U.S. Supreme Court to determine whether virtual assets are securities.
This formed the basis of the SEC’s case against Ripple Labs over the XRP token that has dragged on since 2020. With Ethereum transitioning to proof-of-stake (PoS), one law professor thinks that ETH might be considered a security given the activities of stakers.