Prometheum Capital Launches Custodial Services with Focus on ETH
Prometheum Capital LLC, a subsidiary of Prometheum, Inc., has announced the launch of its custodial services, starting with ether (ETH) as its first offering. The services will initially cater to institutional clients such as asset management firms, hedge funds, banks, and registered investment advisors. The official release states that the custodial services will be available in the first quarter of this year. Prometheum plans to expand its services to include retail clients in 2024.
Prometheum aims to align its custodial services with strict regulatory and compliance mandates outlined by federal security laws. Co-CEO Aaron Kaplan stated that the initiative allows investors to engage with digital assets within established regulatory guidelines.
SEC Decision Looms as Prometheum Ventures into Ether
SEC Chair Gary Gensler’s suggestion that ether could be classified as a security and CFTC Chair Rostin Behnam’s view that it is a commodity has created confusion within the industry. Prometheum’s decision to offer ether custodial services may force the SEC to make a definitive ruling on the matter. According to Fortune, this move by Prometheum could push the SEC towards a decision.
Prometheum’s Compliance Amid SEC Scrutiny
The SEC has consistently emphasized that crypto exchanges must register with the agency. Over the past year, Coinbase, Binance, and Kraken have faced charges for allegedly operating as unregistered entities. While crypto firms argue against registration, Prometheum obtained its license from the SEC and faced criticism from Republican lawmakers and others in the industry.
When questioned about registering with the SEC, Prometheum Co-CEO Aaron Kaplan emphasized the importance of working within regulations instead of trying to change them. He believes that following the law and properly registering under securities regulations leads to success, as demonstrated by their approval for a special purpose broker-dealer license and the recent approval for clearing and settlement services.
Hot Take: Prometheum’s Custodial Services Expand Crypto Accessibility
Prometheum’s launch of custodial services, starting with ether, marks another step towards expanding access to digital assets. By targeting institutional clients and complying with regulatory guidelines, Prometheum is providing a secure pathway for investors to engage with cryptocurrencies. The SEC’s classification of ether as either a security or commodity will have significant implications for the industry, and Prometheum’s move could potentially influence the SEC’s decision. As more crypto exchanges face scrutiny from regulatory authorities, Prometheum’s compliance efforts serve as an example of working within existing regulations to achieve success in the evolving crypto landscape.
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