Crypto Industry Advocates Call for Investigation into Prometheum’s Special Purpose Broker Dealer License
The Blockchain Association, a group that includes Circle, Kraken, and Digital Currency Group, has requested the inspector general of the Securities and Exchange Commission (SEC) to investigate the agency’s granting of a special purpose broker dealer license to Prometheum. The association alleges that Prometheum received a “sweetheart” deal and that its broker-dealer and alternative trading system violate regulatory guidance. There is concern that personal connections with the SEC may have led to an unfair advantage in the market. Additionally, SEC Chair Gary Gensler is accused of using Prometheum to hinder congressional efforts towards legislation. The SEC remains undefeated in over 100 enforcement cases involving crypto, but the outcome of the Ripple case is pending.
Key Points:
– The Blockchain Association is calling for an investigation into the SEC’s granting of a special purpose broker dealer license to Prometheum.
– The association alleges that Prometheum received preferential treatment and violated regulatory guidance.
– There is concern that personal connections with the SEC may have led to an unfair advantage for Prometheum.
– SEC Chair Gary Gensler is accused of using Prometheum to hinder congressional efforts towards legislation.
– The SEC remains undefeated in over 100 enforcement cases involving crypto, with the outcome of the Ripple case pending.
Hot Take: Crypto Industry Raises Concerns Over Prometheum’s Special Purpose Broker Dealer License
The crypto industry is demanding an investigation into Prometheum’s special purpose broker dealer license granted by the SEC. The Blockchain Association accuses Prometheum of receiving preferential treatment and violating regulations. There are concerns about personal connections leading to unfair advantages. Additionally, SEC Chair Gary Gensler is criticized for hindering congressional efforts for legislation. While the SEC has been successful in enforcing existing securities laws in the crypto industry, the outcome of the Ripple case will be crucial. This controversy highlights the ongoing challenges of regulatory oversight and fairness in the evolving digital asset space.
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