1. BITBILIHome
  2. Article

Everything you need to know about Prometheum

• 167 views

TL;DR Breakdown

  • Prometheum is the first SEC-licensed platform for trading digital asset securities.
  • It managed to gain SEC approval despite having no available crypto protocols to trade.
  • Prometheum raised significant funding, including from a company linked to the Chinese Communist Party.
  • It plans to launch its blockchain and token but hasn’t specified their use cases.

Get ready to dive into the complex world of Prometheum, a Special Purpose Broker-Dealer (SPBD) that’s been making waves in the cryptosphere.

Serving as the first officially SEC-licensed platform for trading digital asset securities, Prometheum is taking center stage in the discussion of cryptocurrency regulation. Yet, the road to its current standing is as winding and intriguing as the blockchain technology that powers it.

Understanding the Prometheum phenomenon

Prometheum’s journey began in 2017, and it has since evolved into a platform that holds the golden ticket – the SEC’s approval for trading digital asset securities.

Unlike its well-known counterparts, Coinbase, Binance and the rest, which have been jousting with the SEC for years over regulatory issues, Prometheum secured the much-sought-after license, albeit without a clear path to apply it.

This victory didn’t happen overnight or without backing. Prometheum entered the fray with an impressive financial support, raising $15M in 2021 and totaling $48M from Wanxiang, a company founded by former senior Communist Party official Lu Guanqiu.

This financial influx has been accompanied by the incorporation of former SEC and FINRA staff, adding more credibility and inside knowledge to its ranks.

What’s the catch? Despite possessing the green light to trade digital asset securities, Prometheum currently lacks any cryptocurrencies registered with the SEC for trading on its platform.

So, while it has the theoretical ability to operate, the absence of available crypto protocols for trade leaves it in a peculiar standstill.

Prometheum’s story takes another intriguing turn with its connections. It has raised capital via “Network 1 Financial Services,” a broker believed to be affiliated with the Chinese Communist Party and sporting a less-than-transparent regulatory history.

Despite these unusual alliances and its trading quandary, Prometheum continues to champion its plans to build its blockchain and token, albeit with use cases yet to be defined. The company’s CEO, Aaron Kaplan, made a recent appearance at a congressional hearing about cryptocurrency.

Given Prometheum’s distinctive positioning within the regulatory landscape, Kaplan was able to voice the SEC’s argument for the adequacy of current regulation, even though his platform doesn’t trade BTC or ETH. The motive behind his invite was later clarified: The SEC wanted him there.

Seeking clarity: The Blockchain Association’s inquiry

The Blockchain Association, a respected industry representative, has requested information from the SEC about Prometheum’s regulatory status.

This move shows the industry’s dedication to working within established legal frameworks while promoting transparency and regulatory guidance for platforms like Prometheum.

The implications of this request are significant, as clarity from the SEC is vital for fostering innovation and enabling businesses to work within legal boundaries.

By interacting with regulators, the association is striving to bridge the gap between emerging technologies and existing regulation, providing an environment for blockchain-based platforms to thrive.

The outcome of this request will be pivotal in shaping the regulatory environment for blockchain technology and could pave the way for responsible innovation and wider collaboration within the industry.

If the SEC responds favorably, it will offer vital insights into how platforms like Prometheum can operate within the existing legal framework, fostering investor confidence and facilitating the broader adoption of blockchain technology in finance.

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 decision.

文章来源于互联网:Everything you need to know about Prometheum

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19日 08:04
Next 2023年6月19日 08:59

Related articles

  • Snoop Dogg’s NFT passport offers virtual fan tour

    TL;DR Breakdown Snoop Dogg has launched an NFT project, the Snoop Dogg Passport Series, offering fans virtual access to his life on tour. The NFT collection includes behind-the-scenes videos, photos, and potential for future exclusive content. The project was developed in partnership with Web3 platform Transient Labs. In a move that further solidifies his reputation as a digital innovator, rap legend Calvin Cordozar Broadus Jr., better known as Snoop Dogg, is once again making waves in the world of Web3 technology. This time, he’s offering fans an unprecedented virtual window into his life on tour through a pioneering Non-Fungible Token (NFT) project. The Snoop Dogg Passport Series, as the venture is known, extends beyond the confines of traditional fan engagement methods. Instead, it provides holders with an all-access pass to an array of exclusive content from Snoop Dogg’s tours, including behind-the-scenes footage, photographs, and a raft of other benefits. Blazing the trail for future digital merchandise Snoop Dogg, always one step ahead of the curve, sees this endeavor as a natural progression into the future of digital merchandising. In a…

    Article 2023年6月17日

  • SEC founder shares interesting insights about Binance-SEC debacle

    TL;DR Breakdown John Reed Stark, former Chief of SEC Office of Internet Enforcement, has voiced his views on the SEC-Binance legal dispute, lauding the SEC’s aggressive stance. The case is unprecedented as the SEC seeks extraordinary relief against a financial giant like Binance, a move Stark describes as gutsy. Stark, a frequent SEC critic, continues to argue for accountability and transparency in the SEC’s operations despite acknowledging the regulatory body’s boldness in this case. The legal dispute between the U.S. Securities and Exchange Commission (SEC) and Binance, the top cryptocurrency company in the world, has reached new heights. The case’s recent development has drawn the attention of John Reed Stark, a renowned figure in the field of internet enforcement and the founding Chief of the SEC’s Office of Internet Enforcement. Stark’s analysis on the Binance-SEC debacle Stark has been vocal about his views regarding the SEC’s aggressive stance in this case, which involves billions of dollars and could potentially result in a significant asset freeze. The SEC is not typically known for going toe-to-toe with financial behemoths like Binance. Stark…

    Article 2023年6月16日

  • Mark Cuban’s MetaMask wallet drained  nearly $900,000 in suspected phishing attack

    TL;DR Breakdown Mark Cuban has reportedly fallen victim to a phishing attack, resulting in the theft of nearly $900,000. The incident was brought to light by popular crypto investigator WazzCrypto, who noticed unusual activity associated with a MetaMask wallet linked to Mark Cuban. One notable event was a $2 million transfer of USDC. Description Dallas Mavericks owner and prominent US investor Mark Cuban has reportedly fallen victim to a phishing attack, resulting in the theft of nearly $900,000 from one of his MetaMask wallets. The incident has raised concerns about the security of cryptocurrency assets. Suspicious activity detected The incident was brought to light by popular crypto investigator WazzCrypto, … Read more Dallas Mavericks owner and prominent US investor Mark Cuban has reportedly fallen victim to a phishing attack, resulting in the theft of nearly $900,000 from one of his MetaMask wallets. The incident has raised concerns about the security of cryptocurrency assets. Suspicious activity detected The incident was brought to light by popular crypto investigator WazzCrypto, who noticed unusual activity associated with a MetaMask wallet linked to Mark Cuban….

    Article 2023年9月16日

  • Poly Network temporarily halts services after another hack

    TL;DR Breakdown The exploit involved manipulating a smart contract function on the platform’s cross-chain bridge protocol, leading Poly Network to temporarily suspend its services.  Although the exact amount stolen in the attack was not specified by Poly Network, it was reported that the hacker transferred at least $5 million worth of crypto. Binance CEO Changpeng Zhao reassured customers that the attack would not affect Binance users, as they do not support deposits from the Poly Network. Description The cross-chain bridge platform Poly Network fell victim to a major attack, resulting in a hacker being able to generate billions of tokens for profit on July 2. The exploit involved manipulating a smart contract function on the platform’s cross-chain bridge protocol, leading Poly Network to temporarily suspend its services. The attack affected 57 different … Read more The cross-chain bridge platform Poly Network fell victim to a major attack, resulting in a hacker being able to generate billions of tokens for profit on July 2. The exploit involved manipulating a smart contract function on the platform’s cross-chain bridge protocol, leading Poly Network…

    Article 2023年7月5日

  • Uncertainty grips China’s digital economy as Trust Reserve’s core team disappears

    TL;DR Breakdown The Trust Reserve’s core team, formerly the CNHC Group, has suddenly disappeared. The Trust Reserve headquarters in Shanghai have been subjected to a judicial seizure. Trust Reserve had secured $10 million in a Series A+ funding round earlier this year. The skyline of China’s booming digital economy is currently shrouded in uncertainty as reports have emerged about the sudden disappearance of the Trust Reserve’s core team, formerly the CNHC Group. A prominent name in the blockchain realm, Trust Reserve is best known for issuing two major stablecoins, one backed by the Chinese Yuan (CNY) and the other backed by the Hong Kong Dollar (HKD). On May 29, the team vanished abruptly from the radar, sparking concern and raising eyebrows across the crypto community. According to a recent article by PANews, a few relatives of the missing team members have been informed about this unexpected development. When PANews reporters took the initiative to visit Trust Reserve’s headquarters in Shanghai, they were greeted by a stark notice declaring a “judicial seizure.” The implications of this finding have sent ripples through…

    Article 2023年6月4日
TOP