Following charges brought by the Securities and Exchange Commission (SEC) against Justin Sun and his companies for various violations four weeks ago, Binance has decided to remove the $TRX token from its platform. Binance US chose to delist $TRX after periodic review of the token. In a tweet from Binance.US Customer Support, we can understand that the token would not have met the requirements for excellence.
According to Binance US, the review process included analysis of various factors such as liquidity and trading volume. Another factor considered is each token’s level of compliance with US regulators like the SEC.
Presumably $TRX has failed in this regard, given that the SEC brought fraud and manipulation charges against Tron and its founder Justin Sun only four weeks ago.
According crypto news information that we have in our possession, the SEC charges allege that Sun and his firms manipulated the secondary markets for the benefit of $TRX through an extensive washtrading program and also artificially inflated its trading volume.
Additionally, the SEC alleges that Sun used “rewards programs” to trick social media recruiters into promoting $TRX and $BTT and persuading others to do the same.
Due to its own regulatory challenges, Binance and its CEO, Changpeng Zhao, are likely under great pressure to show that all ongoing operations are fully compliant, when it comes to the withdrawal of the $TRX token.
However, given the way SEC Chairman Gensler and his agency are attacking the crypto sector, it would seem that what Binance has done in the past is what will ultimately matter.
The SEC, with the full backing of the Biden administration, appears intent on bringing down the largest cryptocurrency exchange. One reason for this could be that the administration perceives cryptocurrencies as a threat to the dollar and shutting down such a large platform will help cut off public access to cryptocurrencies.
It looks like Binance and Tron will face a lot of regulatory challenges in the months and years to come. Their ability to stay operational will depend on their ability to deal with the SEC and withstand the negative pressure from the mainstream media that will likely be directed at them.
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