Due to the federal regulators, Binance US must delist the AMP cryptocurrency from its app. After the Securities and Exchange Commission filed against a couple of key individuals in the crypto space, they alleged that AMP and several other cryptocurrencies labeled under “crypto asset securities” went against the SEC regulations.
Binance US complies with the SEC and will delist the AMP/USD trading pair on August 15.
The crypto exchange posted a blog announcing the delisting of AMP. The statement said, “We believe that, in some circumstances, delisting an asset best protects our community from undue risk.”
Contrary to the delisting, Binance US claimed that AMP would return to the platform, although without any official date.
Other Cryptocurrencies in Trouble
Any cryptocurrency under the security label may also get delisted if the SEC does not see them as fit. These include DFX Finance (DFX), Rari Governance Token (RGT), Rally (RLY), Kromatika (KROM), and Powerledger (POWR), to name a few.
US Commodity Futures Trading Commissioner Carline Pham tweeted a statement on the CFTC strictly following the 12-year-old Dodd-Frank Act law. She stated that the CFTC must do rigorous means to ensure all utility tokens and DAO-based tokens follow the law so the trust from the “Congress and American people” will not break.
Since the delisting announcement, AMP dropped to 6% on August 1, 2022. Ironically, RGT surged to 55% even after it was involved in the SEC investigation.
The wake of the delisting would draw concern for investors – especially those who take risks more than extensive research. There are over 600 cryptocurrencies in Binance alone; no token or coin is safe as long as the SEC investigates each of them. The stricter implementation of the US SEC and countries like the UK, Russia, India, and Singapore putting new limitations on crypto access have all led to a constant downward spiral for the crypto market.
Analysts say that the accumulation of cryptocurrency begins and a market turn may happen in September 2022. Still, any analysis will turn false if constant world event black swans continue to flood the crypto market.
The depegging of the US Dollar Terra, the constant hacks on multiple DeFi platforms, the continuous argument whether NFTs are proper investments or just hype value, and the ever-growing concern of global inflation continue to shadow the crypto industry.
Investors and analysts stated that since January 2022, Bitcoin and the altcoin market have experienced the worst bear movement since 2018. It would take substantial white swan events to bring cryptocurrencies back to a green rally – and hopefully for Bitcoin to hit $100,000 before 2022 ends.