Prometheum Launches Ethereum Custodial Services
Prometheum has announced its plans to offer custodial services for Ethereum (ETH) and has opened sign-ups for asset management firms, hedge funds, banks, and other financial entities. This move comes as Ethereum remains without a definitive classification as a security by the U.S. SEC.
Background: Prometheum Faces Scrutiny
Earlier, Prometheum faced scrutiny when co-CEO Aaron Kaplan testified before the U.S. House of Representatives Committee on Financial Services. This led to concerns from U.S. Senator Thomas Tuberville and prompted an investigation by the FSC. However, in January, Prometheum received approval from FINRA to clear digital assets.
Ethereum Custodial Services Tailored to Regulation
Prometheum’s custodial services for ETH comply with federal security laws. It is notable that Prometheum has chosen to custody Ethereum despite the SEC’s silence on its classification, while Bitcoin is recognized as a commodity. The CFTC Chairman has expressed their view that Ethereum qualifies as a commodity. The announcement also coincides with the SEC’s deliberations on an ETH ETF.
Hot Take: Prometheum Strengthens Custodial Offerings with ETH
Prometheum’s decision to provide custodial services for Ethereum demonstrates their commitment to expanding their offerings in the cryptocurrency market. By catering to the regulatory requirements and standards, Prometheum aims to establish itself as a secure and compliant platform for investors and institutional clients. As the SEC continues to grapple with the classification of Ethereum, Prometheum’s move could pave the way for further adoption and recognition of the cryptocurrency in the U.S. market.
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