Binance US said the move was the result of a periodic review and that factors it regularly considers can include trading volume and liquidity, changes in a token’s risk profile or evidence of fraud or unethical conduct, among others.
The TRON token fell nearly 5% against the US dollar after the announcement, which was posted on Twitter and the Binance US website, while the much smaller Spell token fell more than 5%, based on data from CoinMarketCap.
The two tokens will be delisted on April 18, Binance US said. Withdrawals of both will remain open, but trading and deposits will close.
Justin Sun, founder of the TRON token, told Reuters in a text message that the impact would be “relatively small”.
“Binance US trading volume is less than $1 million per day. TRX’s current trading volume is $400 million,” said Sun, using the token’s ticker symbol. Sun was accused of fraud by the US Securities and Exchange Commission (SEC) last month.
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Sun has previously said the SEC’s “complaint lacks merit”, and that the SEC’s framework for regulating digital assets “is still in its infancy and is in need of further development”. Reuters was not immediately able to contact Spell representatives.
US watchdog sues Binance
Last month, the US Commodity Futures Trading Commission (CFTC) sued Binance Holdings and its chief executive officer Changpeng Zhao for allegedly breaking derivatives rules.
The CFTC filed the lawsuit in federal court in Chicago. The derivatives regulator said Binance shirked its obligations by not properly registering with it.
“Defendants have disregarded applicable federal laws while fostering Binance’s US customer base because it has been profitable for them to do so,” the CFTC said in its complaint.
Since at least 2021, the CFTC has been probing Binance over whether it failed to keep US residents from buying and selling crypto derivatives. CFTC rules generally require platforms to register with the agency if they let Americans trade those products.
