Binance US, the American-based subsidiary of the largest cryptocurrency exchange by volume, has announced that it plans to delist the cryptocurrency asset Tron (TRX), along with Spell (SPELL) on April 18, 2023. The company stated that it periodically reviews the assets it lists and when a “digital asset no longer meets our high standards, or industry circumstances change, we conduct a more in-depth review of the affected asset and assess whether further action is necessary (i.e. delisting).” Binance US will close deposits for SPELL and TRX on April 17, 2023, the day before delisting, but withdrawals will remain open.
Although it is delisting Tron’s native asset TRX, Binance US will continue to support USDT’s TRC20 version and USDC issued on the Tron network. Following the delisting news, TRX lost 2.8% of its value against the U.S. 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).
The delisting news follows Binance Holdings Ltd. being sued by the U.S. Commodity Futures Trading Commission (CFTC) and Tron founder Justin Sun being sued by the Securities and Exchange Commission (SEC) five days earlier. In the SEC lawsuit against Sun, the U.S. regulator insists TRX is an unregistered security, and Sun has also been accused of market manipulation.
Binance US states that delisting usually relates to a cryptocurrency asset’s changing risk profile, volume and liquidity, the network’s resilience to external or internal attacks, and “regulatory standing in the United States.” The U.S. has been cracking down on cryptocurrency businesses, and on March 9, 2023, New York Attorney General Letitia James filed a lawsuit against Kucoin and declared that ethereum (ETH), the second-largest cryptocurrency by market cap, was an unregistered security. In the first week of April, the crypto exchange Bittrex announced that it was closing U.S. operations due to regulatory uncertainty.
The decision by Binance US to delist Tron and Spell cryptocurrencies has raised questions about the future of cryptocurrency trading in the U.S. The move comes amid a wider crackdown on cryptocurrency businesses by U.S. regulators, who are concerned about the potential for fraud and market manipulation.
The delisting of Tron and Spell by Binance US is likely to have a significant impact on the value of these cryptocurrencies. Tron has already lost 2.8% of its value against the U.S. dollar following the announcement. While Spell is associated with the Abracadabra.money project, which issues the stablecoin asset called magic internet money (MIM).
The decision by Binance US to continue supporting USDT’s TRC20 version and USDC issued on the Tron network indicates that the exchange is still committed to the Tron network, despite the delisting of TRX. However, the move is likely to raise concerns among Tron investors, who may be worried about the future of the network.
The delisting of Tron and Spell by Binance US is just the latest in a series of regulatory actions against cryptocurrency businesses in the U.S. The move comes amid growing concerns about the potential for fraud and market manipulation in the cryptocurrency industry.
The future of cryptocurrency trading in the U.S. remains uncertain, as regulators continue to crack down on the industry. However, many in the cryptocurrency community remain optimistic about the future of the industry, and believe that it will continue to grow and evolve in the coming years.
In conclusion, the decision by Binance US to delist Tron and Spell cryptocurrencies is likely to have a significant impact on the value of these assets. However, it remains to be seen how this move will affect the wider cryptocurrency industry in the U.S. and around the world.
