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

  • MasterCard empowers UK banks to combat payment fraud with AI-powered solution

    TL;DR Breakdown Mastercard introduces AI-powered “Consumer Fraud Risk” tool to combat payment fraud and scams in the UK. The solution leverages large-scale payments data and real-time analysis to identify and prevent various types of scams before funds leave victims’ accounts. Early adoption by TSB shows significant success, with potential savings of nearly £100 million across the UK, prompting other banks to embrace the solution. Description Financial services provider Mastercard is leading the charge against payment fraud and scams with its AI-powered tool called “Consumer Fraud Risk.” The solution, now live in the UK, leverages Mastercard’s latest AI capabilities and its unique network view of account-to-account payments to help banks predict and prevent various types of scams. According to an announcement, … Read more Financial services provider Mastercard is leading the charge against payment fraud and scams with its AI-powered tool called “Consumer Fraud Risk.” The solution, now live in the UK, leverages Mastercard’s latest AI capabilities and its unique network view of account-to-account payments to help banks predict and prevent various types of scams. According to an announcement, Mastercard has…

    Article 2023年7月8日
  • ETH and BTC stall amid inflation in August

    TL;DR Breakdown Inflation in August has affected crypto prices and ushered in a bloodbath for Bitcoin and Altcoins alike. The inflation levels in August have slightly decreased from a staggering nine percent in June but are still above the Fed’s 2% target. Crypto market analysts point out a bear market possibility, while others remain hopeful that Bitcoin halving in April 2024 will usher in the long-awaited bull run. Description August was an unfavorable month across the USA, with soaring inflation. However, crypto prices have stalled without forming any distinct trends. Bitcoin continues to flirt with the 30,000 mark, as Ethereum shows an upward trend. The inflation levels in August have slightly decreased from a staggering nine percent in June but are still above the … Read more August was an unfavorable month across the USA, with soaring inflation. However, crypto prices have stalled without forming any distinct trends. Bitcoin continues to flirt with the 30,000 mark, as Ethereum shows an upward trend. The inflation levels in August have slightly decreased from a staggering nine percent in June but are still…

    Article 2023年9月14日
  • U.S. national debt skyrockets to $33 trillion: Report 

    TL;DR Breakdown The U.S. national debt reached a record high of $33.04 trillion, according to Treasury Department data, raising concerns amid a looming government shutdown at the end of September. The cost of servicing the debt is expected to triple by 2032 due to rising interest rates, potentially surpassing the U.S.’s spending on major programs like Social Security and Medicare by 2053. Political divisions persist as House Republicans propose a short-term funding plan, which has already encountered intra-party opposition, increasing the risk of a fiscal crisis. Description According to data released by the Treasury Department, the U.S. national debt has reached an all-time high of $33 trillion. This alarming figure comes at a time when Congress is scrambling to prevent a government shutdown by the end of September, adding another layer of complexity to the nation’s already precarious fiscal situation. The numbers … Read more According to data released by the Treasury Department, the U.S. national debt has reached an all-time high of $33 trillion. This alarming figure comes at a time when Congress is scrambling to prevent a government…

    Article 2023年9月20日
  • Blinken: The whole world wants China and US to be best friends

    TL;DR Breakdown U.S. Secretary of State Antony Blinken says there is a global desire for a responsibly managed US-China relationship, amid concerns of a new Cold War. Blinken and other top officials’ recent visits to Beijing represent efforts by the Biden administration to foster stability and dialogue with China. Description Stability and cooperation between the United States and China, the world’s two largest economies, are high on the global wish list, according to Antony Blinken, the U.S Secretary of State. Blinken’s sentiments express an urgent appeal for a responsibly managed relationship between the two superpowers, as he feels a universal yearning for the countries to … Read more Stability and cooperation between the United States and China, the world’s two largest economies, are high on the global wish list, according to Antony Blinken, the U.S Secretary of State. Blinken’s sentiments express an urgent appeal for a responsibly managed relationship between the two superpowers, as he feels a universal yearning for the countries to reconcile their differences. A global appeal for diplomacy Blinken noted a heightened global interest in the US-China…

    Article 2023年7月25日
  • U.S. banks now hold over $3 trillion in cash but there’s a catch

    TL;DR Breakdown U.S. banks currently hold over $3 trillion in cash, a strategic response to an unpredictable financial climate. March saw significant bank failures, including Silicon Valley Bank and Signature Bank, causing trust issues in the financial sector. Credit agencies, like S&P and Moody’s, downgraded several U.S. banks, further challenging the sector’s stability. Description The latest financial reports are revealing a remarkable trend: U.S. banks are currently sitting on an eye-watering sum of over $3 trillion in cash. The reasons for this financial strategy are varied and deeply interconnected, stemming from a cautious approach to an unpredictable economic climate and recent bank failures. Springtime’s Ghosts Still Haunting the Financial … Read more The latest financial reports are revealing a remarkable trend: U.S. banks are currently sitting on an eye-watering sum of over $3 trillion in cash. The reasons for this financial strategy are varied and deeply interconnected, stemming from a cautious approach to an unpredictable economic climate and recent bank failures. Springtime’s Ghosts Still Haunting the Financial Realm The banking sector, clearly, hasn’t forgotten the recent shocks it endured. March’s…

    Article 2023年9月6日
TOP