US lawmakers urge SEC, FINRA on Prometheum approval

TL;DR Breakdown

  • House Financial Services Committee questions SEC and FINRA about Prometheum’s SPBD license.
  • Concerns raised over the rapid approval given Prometheum’s lack of operating history.
  • Prometheum came to attention after its co-CEO, Aaron Kaplan, testified before the

Description

Mounting pressure descends on the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) as prominent figures from the House Financial Services Committee demand clarity over the somewhat controversial granting of a special purpose broker-dealer (SPBD) license to Prometheum. Questionable License Approval Raises Eyebrows The committee, chaired by Patrick McHenry, joined by 20 … Read more

Mounting pressure descends on the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) as prominent figures from the House Financial Services Committee demand clarity over the somewhat controversial granting of a special purpose broker-dealer (SPBD) license to Prometheum.

Questionable License Approval Raises Eyebrows

The committee, chaired by Patrick McHenry, joined by 20 other members, directed their inquiries at both SEC Chair, Gary Gensler, and FINRA’s head honcho, Robert Cook. A primary point of contention?

The bewildering rapidity of the license approval. Especially since Prometheum, touting itself as the answer to regulated digital asset offerings, remains yet to prove its worth in practical service delivery.

With a zero-client history, one could argue that the rush lacked justifiable grounds. This decision has left many pondering the possibility of missed steps or overlooked criteria in the approval process.

Prometheum, despite its establishment in 2017, remained largely under the radar, escaping significant attention until Aaron Kaplan, its co-founder and co-CEO, graced the House committee with his presence earlier in June.

The company’s announcement of having received the SPBD license in May had both cryptocurrency enthusiasts and lawmakers arching their eyebrows in skepticism, with a faction even calling for a deep-dive investigation into the depths of the firm’s operations and services.

Ties to the Chinese Communist Party?

Compounding the curious case of Prometheum’s lightning-fast license approval is a potentially more sinister subplot. The firm has been under the microscope, not only for its operational credibility but for alleged affiliations with the Chinese Communist Party (CCP).

Now, this isn’t just a light accusation. Ties with the CCP can hint at geopolitical influences and strategies that might run deeper than the mere granting of licenses.

Hence, the committee members didn’t mince words when they called on FINRA for a thorough breakdown, demanding answers on Prometheum’s SPBD license and any possible affiliations.

However, the firm wasn’t about to take these insinuations lying down.

In a swift response to these allegations, a representative from Prometheum mentioned the SEC had previously wrapped up an investigation on the firm’s ties with Shanghai Wanxiang Blockchain, and any suspicions regarding the CCP.

Kaplan, not one to hold back, had rebuffed similar claims earlier in July, when the calls for probing into the company’s operations first started ringing loud.

This latest development merely adds to the list of concerns regarding the regulation of digital assets in the US.

With the burgeoning growth of the crypto sector, regulatory bodies are tasked with not just monitoring, but also ensuring that the players they license are both legitimate and possess no ulterior motives.

The Prometheum case serves as a glaring reminder of the vigilant oversight required in this rapidly evolving domain. One can only hope that transparency prevails, and the questions posed by the House committee find their answers in the days to come.

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:US lawmakers urge SEC, FINRA on Prometheum 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8月16日 11:04
Next 2023年8月16日 12:06

Related articles

  • Europe wants to be good friends with China, but it is scared

    TL;DR Breakdown Europe is trying to redefine its relationship with China, aiming to reduce its dependency but not sever ties completely. EU diplomats have acknowledged the risk of possible retaliation from China but emphasize the importance of these strategic discussions. The European Commission proposes reviewing foreign investment policies and strengthening export control regulations in light of geopolitical tensions and technological shifts. Description Europe is setting a new course in its dealings with China, with an acute consciousness of the potential backlash if these sensitive maneuvers are mishandled. Amid an escalating global narrative of de-risking from the economic giant, both the United States and Europe signaled a shared intent to minimize reliance on Beijing during a recent G7 … Read more Europe is setting a new course in its dealings with China, with an acute consciousness of the potential backlash if these sensitive maneuvers are mishandled. Amid an escalating global narrative of de-risking from the economic giant, both the United States and Europe signaled a shared intent to minimize reliance on Beijing during a recent G7 meeting. However, the focus isn’t…

    Article 2023年6月25日
  • What chances does Musk have of winning the lawsuit against Zuck?

    TL;DR Breakdown Musk accuses Meta of stealing trade secrets for its new app, Threads. Proving trade secret theft is challenging; requires showing ‘reasonable efforts’ of protection. Precedents like Waymo vs Uber indicate these cases often dwindle down and result in settlements. Threads’ success, reaching 70 million users in four days, has ruffled Musk. Description The echoes of an impending legal standoff between the tech titans, Elon Musk and Mark Zuckerberg, are resounding loudly through Silicon Valley. At the epicenter of this colossal fracas lies the contention that Meta Platforms – Zuckerberg’s tech behemoth, has pilfered trade secrets from Twitter, Musk’s latest acquisition. Unfortunately for Musk, the trajectory of this … Read more The echoes of an impending legal standoff between the tech titans, Elon Musk and Mark Zuckerberg, are resounding loudly through Silicon Valley. At the epicenter of this colossal fracas lies the contention that Meta Platforms – Zuckerberg’s tech behemoth, has pilfered trade secrets from Twitter, Musk’s latest acquisition. Unfortunately for Musk, the trajectory of this conflict might not veer in his favor. Here’s why. Uphill battle for trade…

    Article 2023年7月10日
  • China’s president is ditching the G20 – Details

    TL;DR Breakdown China’s President Xi Jinping is notably skipping the G20 summit in New Delhi. Instead, Premier Li Qiang will represent China during the September event. Xi’s absence might undermine India’s attempts to spotlight its growing global influence. Description President Xi Jinping of China is taking a pass on the upcoming G20 summit in New Delhi. It’s a resounding decision that not only punctuates the tenuous dynamics among global powerhouses but also signals China’s growing confidence in the international stage. The Implications of China’s No-Show The first time the Chinese leader is absent from … Read more President Xi Jinping of China is taking a pass on the upcoming G20 summit in New Delhi. It’s a resounding decision that not only punctuates the tenuous dynamics among global powerhouses but also signals China’s growing confidence in the international stage. The Implications of China’s No-Show The first time the Chinese leader is absent from a G20 summit, this decision is packed with political undertones. Rather than Xi gracing the event, Premier Li Qiang is set to be China’s representative during the September…

    Article 2023年9月1日
  • Uniswap lawsuit over fraudulent token sales dismissed by federal judge

    TL;DR Breakdown A federal judge in New York dismissed a class-action lawsuit against decentralized exchange Uniswap, ruling that the platform was not liable for fraudulent token sales conducted on it. The judge emphasized that due to Uniswap’s decentralized nature, the identities of fraudulent token issuers were unknown, leaving the plaintiffs with no identifiable defendant to blame for their losses. Description A federal judge in New York has dismissed a class-action lawsuit against Uniswap, ruling that the decentralized exchange was not liable for fraudulent token sales conducted on its platform. The decision has far-reaching implications for the DeFi sector and the application of existing securities laws. The lawsuit had accused Uniswap of being complicit in fraud … Read more A federal judge in New York has dismissed a class-action lawsuit against Uniswap, ruling that the decentralized exchange was not liable for fraudulent token sales conducted on its platform. The decision has far-reaching implications for the DeFi sector and the application of existing securities laws. The lawsuit had accused Uniswap of being complicit in fraud and violating securities laws by facilitating the…

    Article 2023年8月31日
  • FBI and GCHQ issue joint advisory on Russian malware targeting crypto wallets

    TL;DR Breakdown A joint advisory from the FBI, NSA, CISA, and the UK’s NCSC has warned about a new malware called Infamous Chisel, linked to Russia’s GRU military intelligence agency, that targets cryptocurrency wallets and exchange apps on Android devices. The malware specifically seeks out directories related to popular crypto applications like Brave, Binance, Coinbase, and the Trust crypto wallet, as well as communication platforms Telegram and Discord. It also targets the Android Keystore system for storing private keys. Despite its low to medium sophistication and lack of stealth techniques, the malware poses a significant threat to digital assets, especially as it comes at a time when cybercriminals are increasingly targeting valuable digital assets, including cryptocurrencies. Description A joint advisory report from the Federal Bureau of Investigation (FBI), National Security Agency (NSA), Cybersecurity and Infrastructure Security Agency (CISA), and the UK’s National Cyber Security Centre (NCSC) has shed light on a new malware strain known as Infamous Chisel. This malware is specifically designed to target cryptocurrency wallets and exchange applications. The malware … Read more A joint advisory report from…

    Article 2023年9月2日
TOP