According to a recent announcement by Binance US, the US-based subsidiary of the largest cryptocurrency exchange by trading volume, the exchange plans to delist cryptocurrency asset TRON. The news comes after Binance was sued by the U.S. Commodity Futures Trading Commission (CFTC) and Tron founder Justin Sun was sued by the Securities and Exchange Commission (SEC) five days ago.
Binance US reveals delisting of Spell and Tron
Binance US announcedthat it plans to delist cryptocurrency assets TRON (TRX) and spell (SPELL) on April 18, 2023. The company said that it regularly reviews the assets it lists and “if a digital asset no longer meets our high standards or industry conditions change, we will conduct a more detailed review of the affected assets to assess whether further action (i.e., delisting) is warranted.”
Binance US will no longer accept deposits for SPELL andTRXon April 17, 2023, the day before delisting, but withdrawals will remain available. TRXalthough the delisting of TRON’s native assets. Binance US will continue to supportthe TRC20 version of USDTand USDC issued on the Tron network; on news of the delisting,TRXfell 2.8% against the USD and SPELL fell over 4%.
Spell is associated with the Abracadabra.money project, which issues a stablecoin asset called magic internet money (MIM). The delisting news comes on the heels of 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, U.S. regulators allege thatTRXis an unregistered security, and Sun is also accused of market manipulation. In addition, recent reports from people familiar with the matter claim that Binance US is having trouble finding new banking partners.
Binance US states that delistings are usually related to the changing risk profile of cryptocurrency assets, volume and liquidity, network resilience to external or internal attacks, and “regulatory status in the US.” The U.S. is cracking down on the cryptocurrency business, and on March 9, 2023, New York Attorney General Letitia James filed a lawsuit against Kucoin, declaring that ethereum (ETH), the second largest cryptocurrency by market value, is an unregistered security.In the first week of April, crypto exchange exchange Bittrex announced that it would cease operations in the U.S., citing regulatory uncertainty.
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