Patrick T. McHenry, the Chairman of the US Home Monetary Companies Committee has asked that the US Securities and Trade Fee (SEC) chief Gary Gensler hand over the paperwork that needed to do with Prometheum’s licensing.
In keeping with the letter despatched by McHenry to Gensler,
“The approval comes because the Committee is contemplating addressing gaps within the regulation of digital belongings.”
#NEW: Chairman @PatrickMcHenry led Republicans on the Monetary Companies Committee in letters to @FINRA and @SECGov concerning the shady approval of Prometheum as the one Particular Objective Dealer-Vendor for digital belongings.
👇 Learn extra 🔗https://t.co/2B9TYw070h pic.twitter.com/8erscG99JO
— Monetary Companies GOP (@FinancialCmte) August 15, 2023
Prometheum Licensing: an SEC Affair
In context, the crypto-related agency was granted approval for a particular dealer license in Might by the Monetary Trade Regulatory Authority (FINRA) below the purview of the SEC. The license permits Prometheum to supply custody providers for digital asset securities.
Nevertheless, the approval has raised severe considerations within the cryptocurrency ecosystem and amongst lawmakers.
The SEC’s approval got here shortly after the regulator levied enforcement actions in opposition to high cryptocurrency exchanges Binance and Coinbase. Crypto group members raised brows at the truth that a far less-recognized crypto agency acquired such a license from the regulator. Notably, Prometheum doesn’t supply buying and selling in high crypto belongings like Bitcoin (BTC) and Ethereum (ETH).
Some Republican lawmakers who’ve been weary of the actions of the SEC challenged the timing of the license, citing that it “raises severe questions” particularly as they have been nonetheless busy engaged on regulation for the crypto business. The approval got here just a few weeks after Republicans within the U.S. Congress introduced a brand new draft Invoice to reclassify digital tokens from securities to commodities.
Republicans Suspects Foul Play
In the course of the U.S. Home Monetary Companies Committee hearing which was held in mid-June, Prometheum’s Chief Government Officer (CEO) Aaron Kaplan was allowed to face as a witness within the listening to. Once more, this motion raised considerations. This pressured Consultant Mike Flood to tag the Prometheum approval from FINRA and SEC as ‘nonsense’.
Prometheum’s co-CEO stated that the way in which ahead for the crypto business is thru the present regulatory framework designed by the SEC. It sounded extra like a political battle when the crypto group identified that Kaplan was solely studying a pre-written be aware with narratives from Democratic members of Congress or the markets regulator.
The introduced content material could embrace the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty in your private monetary loss.