U.S. Rep. Ritchie Torres Requests Investigation Into Prometheum’s License
In a recent development, U.S. Representative Ritchie Torres has called for an investigation into the licenses granted by the U.S. Securities and Exchange Commission (SEC) to Prometheum, a digital assets trading platform. Torres argues that Prometheum, despite having a license, does not actually trade digital assets. This has raised concerns and prompted Torres to request an independent review of the SEC’s failure to provide a viable path for crypto exchanges to register. Additionally, he questions the alleged “backroom deals” brokered by the agency with Prometheum.
Key Points:
- Torres seeks an investigation into the licenses granted to Prometheum by the SEC.
- He criticizes Prometheum, labeling it as a Potemkin platform used by the SEC to appease crypto critics.
- Torres calls for an independent review of the SEC’s failure to facilitate registration for crypto exchanges.
- He accuses SEC Chair Gary Gensler of politicizing the registration process.
- Speculations arise regarding the approval of Prometheum’s special purpose broker-dealer (SPBD) license due to its connections with federal agencies and financial companies.
SEC Chair Gary Gensler Accused of Politicizing Agency Processes
Representative Torres explicitly names SEC Chair Gary Gensler in his letters, accusing him of politicizing the registration process to an unprecedented extent. Torres highlights Gensler’s role in granting a license to Prometheum, suggesting that it was a deliberate move to advance his own agenda. Prometheum gained attention when its co-CEO testified before Congress, claiming that crypto companies were unwilling to comply with registration requirements. However, Adam Cochran of Cinneamhain Ventures uncovered connections between Prometheum executives and federal agencies and financial firms, raising suspicions about the approval of their SPBD license. Torres criticizes the SEC’s behavior in the digital assets space, likening it to an overzealous traffic agent who inconsistently enforces rules.
Hot Take: The controversy surrounding Prometheum’s license and the accusations against SEC Chair Gensler highlight the need for transparency and accountability in the regulation of digital assets. It is crucial to ensure that licenses are granted based on merit and compliance, rather than for political or personal gain. The SEC should address these concerns and work towards establishing clear guidelines to foster trust and confidence in the crypto industry.
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