The SEC’s in Crypto’s Frontier
In 2023, the SEC has been exerting its authority in the crypto sector by targeting prominent entities like Ripple, Paxful, Circle, Binance, and Coinbase. Binance and Coinbase, as leading crypto exchanges, have a significant influence on global trading. However, one project that stood out was Prometheum, which gained attention when co-founder Aaron Kaplan praised the SEC’s regulatory framework for crypto during a Congressional hearing. This surprised many in the crypto community who believed that the SEC’s regulations were unclear and overreaching.
The Regulatory Approval
Prometheum, founded by Aaron and Benjamin Kaplan in 2017, aimed to combine the benefits of blockchain technology with the security of a regulated marketplace. Their efforts were recognized when they became the first crypto enterprise to receive a “special purpose broker-dealer” status for digital assets from the Financial Industry Regulatory Authority in May. In October, the SEC granted them the title of “alternative trading system,” which reduced regulatory oversight compared to national exchanges. There have been allegations of ties between Prometheum and Ethereum founder Vitalik Buterin.
The Corruption Scandal
Crypto analyst Mr. Huber claims that the SEC’s preferential treatment of Ethereum and its connection to Prometheum is a major corruption scandal in US history. He accuses Ethereum of bribing the SEC, stating that there is no way around this fact. This scandal raises questions about the integrity of the SEC and its role in protecting investors.
Hot Take
This revelation of a potential corruption scandal involving Ethereum and the SEC is significant for the crypto community. It undermines trust in regulatory bodies and highlights the need for transparency and fairness in the industry. It remains to be seen how this scandal will unfold and what consequences it will have for Ethereum and the SEC.
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