SEC and FINRA are being probed by the U.S. House Financial Services Committee over the “shady approval” of Prometheum. The lawmakers have sent letters to SEC Chair Gary Gensler and FINRA President and CEO Robert Cook, demanding transparency and documents related to Prometheum’s application. The approval of Prometheum as the first special purpose broker-dealer for digital assets raises questions about timing and motives. Prometheum has not yet served any customers and has refused to make public the digital asset securities it would support. It also lacks the ability to perform clearing or settlement services. The lawmakers are also concerned about Prometheum’s ties to the Chinese government, citing national security and data privacy concerns.
– SEC and FINRA are being investigated over the approval of Prometheum as the first special purpose broker-dealer for digital assets.
– Lawmakers have demanded transparency and documents related to Prometheum’s application.
– Prometheum has not yet served customers and has not disclosed the digital asset securities it would support.
– The approval raises questions about timing and motives, as well as the selection of a firm with no operating history.
– Concerns are also raised about Prometheum’s ties to the Chinese government and potential national security risks.
Hot Take: The investigation into the approval of Prometheum highlights the need for transparency and scrutiny in the regulation of digital assets. It is important to ensure that regulatory decisions are made in the best interest of investors and the security of the financial system. The questions raised about Prometheum’s approval and its ties to the Chinese government warrant further investigation to address any potential risks.
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