House Financial Services Committee Criticizes SEC’s Approval of Prometheum
Republicans on the House Financial Services Committee (HFSC) are questioning the U.S. Securities and Exchange Commission’s (SEC) approval of crypto broker Prometheum. The committee, led by Patrick McHenry, expressed concerns about the timing of the approval and its implications for crypto regulation in the United States.
Key Points:
- The HFSC believes that the timing of Prometheum’s approval was intended to demonstrate that legislation is unnecessary for the custody of digital asset securities.
- Prometheum was approved as the first-ever Special Purpose Broker-Dealer for digital assets by the Financial Industry Regulatory Authority (FINRA) in May.
- The approval came after two years of the regulatory framework’s establishment, during which no other crypto exchange received approval.
- The HFSC held hearings on digital asset legislation in the same month, aiming to clarify the SEC’s jurisdiction over crypto assets.
- SEC Chairman Gary Gensler and Prometheum co-founder Aaron Kaplan have used the approval to argue for the existence of a clear pathway to compliance for existing firms.
Hot Take:
The HFSC’s criticism of the SEC’s approval of Prometheum raises important questions about the regulatory landscape for cryptocurrencies. The committee’s concerns about the timing and potential implications of the approval warrant further investigation and transparency from the SEC and FINRA. As the debate over crypto regulation continues, it is crucial to ensure that regulatory decisions are fair, consistent, and prioritize the interests of investors and national security.
By
By
By
By
By