1. BITBILIHome
  2. Article

Blockchain Assoc. Files FOIA Request With SEC Over Prometheum’s Broker-Dealer Approval

• 42 views

TL;DR Breakdown

  • Prometheum’s recent approval for the SPBD has raised suspicions within the blockchain community.
  • The Blockchain Association has filed a FOIA request with the SEC concerning Prometheum and its Special Purpose Broker-Dealer (SPBD) for digital asset securities.

The Blockchain Association has taken a significant step by filing a Freedom of Information Act (FOIA) request with the U.S. Securities and Exchange Commission (SEC), seeking crucial information regarding Prometheum and its Special Purpose Broker-Dealer (SPBD) for digital asset securities. The move comes as the SEC intensifies its enforcement efforts within the cryptocurrency industry.

Prometheum, a prominent player in the digital assets space, recently made headlines for obtaining approval for its pioneering SPBD. However, this development has raised suspicions within the blockchain community and prompted the Blockchain Association to take action.

Concerns of Blockchain Association Members

The association’s concerns are further compounded by the revelation that Prometheum’s CEO secured a seat in front of Congress to advocate for the company as a compliant path for digital assets. Additionally, it has come to light that Prometheum has paid over $1.5 million in sales commissions to a Chinese-affiliated entity with a questionable regulatory track record, raising eyebrows among industry observers.

During the congressional hearing and an interview conducted by Laura Shin, the founder of Prometheum was found to have inaccurately portrayed the legal landscape. It has been asserted that Prometheum’s claims of being a compliant option for digital assets are baseless and do not provide evidence of a genuine path to regulatory compliance. This discrepancy was highlighted by Representative Flood during the hearing.

One crucial aspect that raises concerns about Prometheum’s operations is the fact that their Alternative Trading System (ATS) will not be able to trade any tokens, despite their assertions to the contrary, unless the projects associated with these tokens register with the SEC. However, the current regulatory framework lacks a clear and well-defined path for token registration, adding to the uncertainty surrounding Prometheum’s claims of compliance.

The FOIA process, which the Blockchain Association has invoked, plays a crucial role in ensuring transparency and accountability in government agencies. By exercising this right, the association aims to obtain relevant documents and communications that shed light on Prometheum’s approval process and its interactions with the SEC.

Adam Cochran in his twitter thread has highlighted the timeline of Prometheum story since 2017 and legitimate concerns are present.

It should be noted that while the FOIA request has been filed by Blockchain Association, the timeframe for receiving the requested documents may vary. Nevertheless, the law mandates that the SEC must respond to all FOIA requests, instilling hope that the agency will fulfill its obligations in this instance.

What Lies Ahead

The Blockchain Association members, community, investors, and industry stakeholders will be closely monitoring the outcome of the FOIA request and the subsequent disclosures. As the SEC continues its efforts to regulate the digital assets space, the need for transparency and accountability becomes increasingly paramount.

In the coming weeks, the response from the SEC to the FOIA request will determine the extent to which Prometheum’s SPBD approval can be scrutinized and evaluated by the industry. Until then, doubts persist regarding Prometheum’s claims of providing a compliant path for digital assets and the implications of their association with a Chinese-affiliated entity with regulatory concerns.

As the digital asset industry evolves, regulatory clarity and adherence to compliance standards will be vital for the sector’s long-term growth and mainstream adoption. The outcome of this situation involving Prometheum will undoubtedly have significant implications for the broader blockchain and cryptocurrency landscape.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:Blockchain Assoc. Files FOIA Request With SEC Over Prometheum’s Broker-Dealer Approval

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月18日 21:51
Next 2023年6月18日 22:31

Related articles

  • SBF’s lawyers deny DOJ’s claims on internet access

    TL;DR Breakdown Lawyers of Sam Bankman-Fried have refuted the DOJ’s claim that their client has been provided with sufficient internet access. SBF’s lawyers list the difficulties their client is experiencing. Description Prosecutors in the case involving FTX founder Sam Bankman-Fried are facing accusations of exaggerating the level of access he has to defense materials. In a memo submitted by his defense attorneys, it was asserted that Bankman-Fried’s access to critical resources for his defense has fallen short of the Department of Justice’s claims. SBF has been … Read more Prosecutors in the case involving FTX founder Sam Bankman-Fried are facing accusations of exaggerating the level of access he has to defense materials. In a memo submitted by his defense attorneys, it was asserted that Bankman-Fried’s access to critical resources for his defense has fallen short of the Department of Justice’s claims. SBF has been grappling with inadequate internet access, a significant hindrance when he is brought to a cell block at the Southern District of New York courthouse. SBF legal team refutes DOJ’s claim The SBF defense team has argued…

    Article 2023年9月10日

  • The importance of Regulators’ non-interference in Stablecoins: Ensuring fair and transparent crypto markets

    TL;DR Breakdown There is an importance of regulatory clarity regarding stablecoins and a balance where regulators do not preemptively enforce rules before Congress. Stablecoins are digital currencies designed to maintain a stable value by pegging them to an underlying asset, such as a fiat currency or a commodity.  Market analysts caution against hasty actions that could stifle innovation and drive stablecoin activity to jurisdictions with looser regulations, potentially creating regulatory arbitrage. In the rapidly evolving landscape of crypto and blockchain technology, stablecoins have emerged as a crucial component, providing stability and utility within the volatile crypto market. However, as stablecoins gain prominence, it becomes essential for regulators to navigate this domain cautiously. Stablecoins’ role in the crypto market Stablecoins, as the name suggests, are cryptocurrencies designed to maintain a stable value by pegging their worth to an underlying asset, such as fiat currency or commodities. This stability is achieved through various mechanisms, including collateralization, algorithmic control, or a combination of both. The primary purpose of stablecoins is to provide a reliable medium of exchange, store of value, and unit of…

    Article 2023年5月19日

  • Unmasking Threat: UN Report Raises ‘Serious and Urgent’ Concerns About AI Deepfakes

    TL;DR Breakdown UN report identifies AI-generated deep fakes as a significant threat to information integrity, particularly on social media. Urgent action is needed to address the rapid advancements in generative AI and develop voluntary guidelines to ensure responsible use and combat the spread of false information. In a recently published report, the United Nations (UN) has emphasized the urgent need to address the proliferation of artificial intelligence-generated deepfakes, which pose a significant threat to information integrity, particularly on social media platforms. The UN has called for stakeholders in the AI community to take immediate action and develop voluntary guidelines for responsible AI use.  Additionally, the report will serve as a foundation for the creation of a UN Code of Conduct for Information Integrity on Digital Platforms, to be discussed at the upcoming Summit of the Future in September 2024. As concerns grow over the impact of generative AI, global leaders such as former UK Prime Minister Tony Blair and Conservative Party politician William Hague are advocating for a new UN framework to address the challenges posed by AI technology. Contents…

    Article 2023年6月16日

  • Federal Reserve: Soaring interest rates are here to stay

    TL;DR Breakdown Jay Powell, Federal Reserve’s Chair, affirms a consistent approach towards maintaining high interest rates. The Fed keeps their benchmark rate at a 22-year high, suggesting a prolonged period of elevated rates. Economic projections indicate a possible rise in the federal funds rate followed by gradual rate reductions in 2024 and 2025. Description There’s a hovering expectation surrounding the Federal Reserve, anticipating a softening of their steadfast approach towards high interest rates. Yet, Jay Powell, the driving force behind the Fed, has curtailed any optimism of swift policy reversal. Holding Steady and Sending Signals Recently, the Fed maintained their benchmark rate at a staggering 22-year high. In the … Read more There’s a hovering expectation surrounding the Federal Reserve, anticipating a softening of their steadfast approach towards high interest rates. Yet, Jay Powell, the driving force behind the Fed, has curtailed any optimism of swift policy reversal. Holding Steady and Sending Signals Recently, the Fed maintained their benchmark rate at a staggering 22-year high. In the aftermath, Powell delivered remarks in a press briefing, masterfully emphasizing that an escape…

    Article 2023年9月23日

  • Celsius Network bankruptcy saga: Judge denies separate class for stakeholders

    TL;DR Breakdown Judge Martin Glenn denied the establishment of a separate stakeholder class for the Celsius Network and avoided addressing the CEL token’s classification as a security. The CEL token’s valuation remains a contentious issue, with allegations of market manipulation and differing opinions on its true worth amidst the company’s bankruptcy. Description In a recent development surrounding the Celsius Network bankruptcy case, Judge Martin Glenn has made a pivotal decision that could shape the future of crypto stakeholders and the broader digital currency landscape. The judge’s ruling, which came to light in a document filed on August 25, has denied the establishment of a separate class of … Read more In a recent development surrounding the Celsius Network bankruptcy case, Judge Martin Glenn has made a pivotal decision that could shape the future of crypto stakeholders and the broader digital currency landscape. The judge’s ruling, which came to light in a document filed on August 25, has denied the establishment of a separate class of stakeholders for the Celsius Network. This decision has also tactfully avoided addressing the pressing issue…

    Article 2023年8月26日
TOP