Lawmakers Question SEC and FINRA Over Prometheums SPBD License

Lawmakers Question SEC and FINRA Over Prometheum’s SPBD License

United States lawmakers are raising concerns about the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) granting Prometheum a Special-Purpose Broker-Dealer (SPBD) license. The House Financial Services Committee Republicans have questioned FINRA CEO Robert Cook and SEC Chair Gary Gensler on Prometheum’s credibility, as the company has not yet served a single customer.

Main Breakdowns:

– Lawmakers question the rationale behind Prometheum’s authorization as an SPBD.
– Only Prometheum has received approval as an SPBD, despite not having any customers.
– Concerns are raised about the risks to national security due to Prometheum’s reported ties to the Chinese Communist Party.
– Prometheum’s transparency regarding its offerings is questioned.
– Prometheum secured SPBD approval while the SEC prepared to take legal action against Binance and Coinbase.

The lawmakers are demanding transparency regarding the approval process for Prometheum and expressing concerns about the potential threat to national security. The committee also challenges Prometheum’s lack of transparency regarding the digital asset securities it will support on its platform. Additionally, questions are raised about the timing of Prometheum’s SPBD approval and its CEO’s appearance before Congress.

Hot Take:

The lawmakers’ questioning of the SEC and FINRA highlights the need for transparency and accountability in the cryptocurrency industry. The approval of Prometheum as an SPBD without serving any customers raises concerns about the legitimacy of the process. The alleged ties to the Chinese Communist Party and lack of transparency further add to the controversies surrounding Prometheum. It remains to be seen how the SEC and FINRA will address these concerns and ensure the integrity of the crypto market.