The US Securities and Exchange Commission (SEC) is reportedly investigating every US-based crypto exchange platform, including Binance.
According to a new Forbes reportUS Senator Cynthia Lummis’ staffer reveals that the regulator is looking into all 40 US-based crypto exchanges, including the world’s largest crypto exchange platform Binance, for possible violations of the law.
Staff say the platforms are in various stages of investigation and that the SEC is working hard to resolve its dispute with the Commodities Futures Trading Commission (CTFC) over which company has ultimate jurisdiction over crypto assets.
The report also notes that a senior executive from a crypto exchange said that based on what he heard from members of the SEC, many exchange platforms have likely received Well Notices, official notices that legal action will be taken against them.
Binance.US recently said it would delist AMP, an Ethereum (ETH)-based cryptoasset aimed at providing payment collateral to the Flexa network, because the SEC deemed it a security within its jurisdiction.
Binance says it is removing AMP out of caution.
“Last week, the Securities and Exchange Commission (SEC) filed securities fraud charges against a former Coinbase employee, among others. In its lawsuit, the SEC named nine digital assets it claims are securities. Of these nine tokens, only Amp (AMP) is listed on the Binance.US platform.
Out of an abundance of caution, we have decided to delist the AMP token from Binance.US, effective August 15, 2022. While trading of AMP may resume sometime in the future on the Binance.US platform, we are taking this step now until there is more clarity around the classification of AMPs.
Disclaimer: The views expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and that any losses are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/Salamahin/Vadim Sadovski