Prometheum is a digital asset trading platform, authorized by the SEC, prohibits its customers from engaging in trading activities involving Bitcoin or Ether, which together represent over 60% of the overall digital asset market.
Prometheum holds the distinction of being the inaugural Special Purpose Broker-Dealer, signifying its status as the pioneering SEC-licensed platform dedicated to the trading of digital asset securities, commonly known as cryptocurrencies.
Prometheum has obtained SEC authorization to facilitate the trading of digital asset securities within its platform. However, it is unfortunate that crypto protocols are currently unable to register as such with the SEC. Consequently, this absence of registered assets leads to a lack of tradable options on the Prometheum platform.
Prometheum and SEC
As it turns out, Prometheum has been in existence for quite some time, specifically since 2017. However, during its inception and at present, the company lacked and still lacks a tangible product. Prometheum can present evidence of a $15 million funding round conducted in 2021. Additionally, the company has recruited several former employees from the SEC as well as former staff from FINRA, a subsidiary of the SEC.
The recent testimony of Aaron Kaplan, the co-founder and co-CEO of Prometheum, has captured significant attention within the cryptocurrency community. On June 13, Kaplan appeared before the U.S. House to discuss regulations pertaining to cryptocurrencies.
Notably, Kaplan’s testimony presented a contrasting viewpoint to the recent statements made by influential individuals in the cryptocurrency industry, including Coinbase. Kaplan appears to support the idea of regulating cryptocurrencies within the framework of existing securities regulations.
“This whole story — Prometheum’s ATS, its CEO’s testimony in Congress — makes no sense,” Blockchain Association chief policy officer Jake Chervinsky responded on Twitter. “Something fishy is going on here.”
Further contributing to the mysterious nature of Prometheum’s activities is the disclosure that the company disbursed more than $1.5 million in sales commissions to an entity with ties to China, known for its subpar regulatory history. This development has sparked apprehension within the Blockchain Association, prompting them to initiate a deeper investigation into Prometheum’s regulatory practices.
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