Prometheum Leaves Blockchain Advocacy Group, Creating Controversy and Confusion

Prometheum Leaves Chamber of Digital Commerce

Prometheum, an SEC-registered broker dealer, has made the decision to leave the Chamber of Digital Commerce, an advocacy group for blockchain technology. The company no longer sees the need for the affiliation and wants to offer trading of cryptocurrencies that are securities. While many market participants, including major exchanges and regulatory bodies, believe that regulatory clarity is needed, Prometheum CEO Aaron Kaplan claims that the SEC has provided a path for compliance with securities laws. However, it is unclear how Prometheum plans to offer trading of most crypto tokens, as they are deemed unregistered securities by the SEC. Prometheum’s solution to the lack of required information for compliance has been to write “N/A” in disclaimers, which has raised eyebrows among other crypto lawyers.

Key Points:

Prometheum has left the Chamber of Digital Commerce, no longer seeing the need for the affiliation.
Prometheum wants to offer trading of cryptocurrencies that are securities.
The company believes that the SEC has provided a path for compliance with securities laws, contrary to the Chamber of Digital Commerce’s view.
Prometheum has launched an alternative trading system, but currently has no tokens traded on the platform.
It is unclear how Prometheum plans to offer trading of most crypto tokens, as they are considered unregistered securities by the SEC.

Hot Take:

Prometheum’s decision to leave the Chamber of Digital Commerce reflects its belief that it can navigate the regulatory landscape for trading securities-backed cryptocurrencies without the need for further clarity. However, the lack of traded tokens on its platform and the SEC’s classification of most crypto tokens as unregistered securities pose significant challenges for Prometheum’s plans. The use of “N/A” in disclaimers also raises concerns about the company’s approach to compliance. Prometheum’s departure from the advocacy group highlights the diverse views within the industry and the ongoing debate surrounding regulatory clarity for blockchain technology.