According to a recent announcement from Binance US, the United States-based subsidiary of the largest cryptocurrency exchange by volume, the exchange plans to delist the tron cryptocurrency asset. The news follows Binance being sued by the US Commodity Futures Trading Commission (CFTC), and Tron founder Justin Sun being sued by the Securities and Exchange Commission (SEC) five days earlier. .
Binance US Reveals Spell and Tron Delisting
Binance US Announced which plans to delist cryptocurrency assets tron (TRX) and spelling (SPELL) on April 18, 2023. The company stated that it regularly reviews the assets it lists, and when a “digital asset no longer meets our high standards, or industry circumstances change, we conduct a further review of the affected asset and assess whether further action (i.e. delisting) is necessary.”
Binance US will close deposits for SPELL and TRX on April 17, 2023, the day before the delisting, but withdrawals will remain open. Although it is removing the native Tron asset TRXBinance US will continue to support USDTThe TRC20 version of ‘s and USDC aired on the Tron network. Following the delisting news, TRX it lost 2.8% of its value against the US dollar, while SPELL lost more than 4%.
Spell is associated with the Abracadabra.money project, which issues the stablecoin asset called Magic Internet Money (MIM). News of the delisting follows Binance Holdings Ltd. being sued by the CFTC and Tron founder Justin Sun being sued by the SEC. In the SEC’s lawsuit against Sun, the US regulator insists TRX it is an unregistered security, and Sun has also been accused of market manipulation. Furthermore, a recent report claimed that people familiar with the matter said that Binance US has been struggling to find a new banking partner.
Binance US claims that the delisting generally relates to a cryptocurrency asset’s changing risk profile, volume, and liquidity, the network’s resistance to external or internal attacks, and the “regulatory position in the United States.” The United States has been cracking down on cryptocurrency businesses, and on March 9, 2023, New York Attorney General Letitia James filed a lawsuit against Kucoin, stating that ethereum (ETH), the second largest cryptocurrency by market capitalization, was an unregistered security. In the first week of April, the Bittrex cryptocurrency exchange announced that it would close its operations in the US due to regulatory uncertainty.
What do you think about Binance US’s decision to delist the Tron and Spell cryptocurrencies? Share your thoughts in the comments section below.
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