Republican lawmakers raised eyebrows again about controversial cryptocurrency company Prometheum, demanding clarity from the U.S. Securities and Exchange Commission (SEC) on Wednesday about how the company will comply with the SEC's new framework. I asked for it.
The SEC introduced a so-called special purpose broker-dealer (SPBD) framework in 2020, and this designation allows companies to facilitate trading in digital asset securities. Although Promethium has not yet fully realized its vision, he is one of the only companies to have received such a registration.
in letter The petition, signed by House Financial Services Committee Chairman Patrick McHenry (R-SC), Rep. Bill Huizenga (R-MI), and Rep. French Hill (R-AR), calls on the SEC to turn over records and communications related to the regulatory status of Prometheum and Ethereum.
Prometheum, a market ecosystem for digital asset securities, announced on Monday We have started a storage service. Ethereum's use as a security has raised concerns among crypto market participants about the asset's regulatory status, unsettling lawmakers.
“Prometheum announces ETH storage service [raises] number Questions were asked regarding what SPBD activities are and are not permitted to do,” the lawmakers wrote. “If there is no answer, […] There is growing concern about the precedent set by the SEC, Financial Industry Regulatory Authority (FINRA), and Prometheum. ”
Last year, the House Financial Services Committee called Prometheum's cryptocurrency strategy “ShadyThe SEC argued that the SEC was using the little-known crypto company as a wedge to show that existing securities laws were sufficient to keep crypto companies in compliance.
As Promethium faces pressure over how it regulates cryptocurrencies, testimony to Congress last year from Promethium co-CEO Aaron Kaplan suggests that many other companies have achieved compliance. This was consistent with the SEC's position that there is a path to compliance for crypto companies, despite claims that it is not possible.
Republican lawmakers argued Wednesday that the SEC is refusing to give any answers on Promethium. They argued that last month's response from the SEC did not adequately explain how the company would comply with its special purpose broker-dealer license.
A lawsuit filed in April by Ethereum software giant ConsenSys claims that the company Alleged The SEC has internally considered Ethereum to be a security for over a year.And in last month's letter, McHenry Accused SEC Chairman Gensler was accused of dodging questions and lying about the matter during congressional testimony last year.
Edited by Andrew Hayward
