The Crypto Industry’s New Favorite Punching Bag – Prometheum – Asks for a Chance

CoinDesk
CoinDesk

30 Jun 2023 12:00 PM

Its SEC-praising co-CEO insists he’s pro-crypto and just needs a little time to prove his company can trade digital assets, even if the token issuers would rather it didn’t....

  • Aaron Kaplan, co-CEO of Prometheum Inc., praised the U.S. Securities and Exchange Commission (SEC) as the most capable financial markets regulatory agency in the world.
  • Kaplan argued that no new crypto rules are needed and that Prometheum will demonstrate a compliant path forward.
  • However, industry insiders criticize Prometheum's model and believe it will run afoul of securities law.
  • Prometheum recently registered as a special purpose broker-dealer for digital assets and as an alternative trading system (ATS).
  • The SEC requires Prometheum to analyze whether a digital asset is a security offered under registration or exemption.
  • Prometheum claims it can handle tokens issued under securities-law exemptions and has submitted a list of examples to the SEC.
  • Prometheum is waiting for SEC approval to clear and settle transactions, which could determine if a digital assets platform can operate under U.S. oversight.

The sentiment of the article is mixed. Aaron Kaplan praises the SEC, but industry insiders criticize Prometheum's model and its compliance with securities law.

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You May Ask

What did Aaron Kaplan say about the U.S. Securities and Exchange Commission during the House of Representatives hearing?What is Prometheum's stance on the need for new crypto rules?How has the industry reacted to Prometheum's claims of being a compliant path forward?What unique registrations does Prometheum have that set it apart from other crypto firms?What is the SEC's requirement for Prometheum as a broker-dealer regarding digital assets?

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