House Republicans Demand Explanation for Prometheum’s Approval as Broker-Dealer
A group of House Financial Services Committee Republicans, led by Chairman Patrick McHenry, have questioned the Securities and Exchange Commission (SEC) about its unique approval of Prometheum Inc. as a broker-dealer for crypto. The lawmakers are seeking answers on how the little-known firm obtained the SEC registration and why it was approved at a specific time. They believe the timing raises concerns that the approval was meant to show that new legislation is unnecessary for regulating digital asset custody. The lawmakers have also sent a letter to the head of the Financial Industry Regulatory Authority (FINRA), which enforces securities standards under the SEC’s watch.
Key Points:
- House Republicans demand an explanation from the SEC regarding Prometheum’s approval as a broker-dealer for crypto.
- The timing of the approval raises concerns about the need for new legislation.
- The lawmakers also question the role of the SEC in championing Prometheum as a representative firm.
- Prometheum executives claim they have followed the registration process like any other firm.
- Other lawmakers have also called for more scrutiny and investigations into Prometheum’s sudden presence in Washington.
These letters from House Republicans highlight the growing scrutiny surrounding Prometheum’s approval as a broker-dealer for crypto. The lawmakers are concerned about the timing of the approval and whether it was used as a demonstration that new legislation is unnecessary. Prometheum executives maintain that they have followed the registration process and are building a compliant crypto platform. The situation has attracted attention from both Republican and Democratic lawmakers, with calls for further investigations. It remains to be seen how this scrutiny will impact Prometheum and the broader regulatory landscape for crypto in the U.S.
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