US lawmakers press SEC and FINRA on Prometheum’s broker-dealer approval

United States lawmakers on the Home Monetary Providers Committee have demanded solutions from the heads of the Securities and Change Fee (SEC) and Monetary Business Regulatory Authority (FINRA) concerning underneath what circumstances Prometheum obtained a particular goal broker-dealer license (SPBD).

In separate letters dated Aug. 9, Home committee chair Patrick McHenry and 20 different members wrote to SEC chair Gary Gensler and FINRA president and CEO Robert Prepare dinner. The lawmakers questioned the “timing and circumstances” of FINRA approving Prometheum’s SPBD as they have been persevering with to contemplate legislative options to regulatory gaps on digital belongings.

“Whereas Prometheum claims it’s the silver bullet for regulated digital asset choices, it has not but served a single buyer,” claimed the lawmakers. “It’s unclear why FINRA would have chosen to approve a agency with no working historical past and no observe document of serving clients over all of the purposes that it has acquired.”

#NEW: Chairman @PatrickMcHenry led Republicans on the Monetary Providers Committee in letters to @FINRA and @SECGov concerning the shady approval of Prometheum as the one Particular Goal Dealer-Vendor for digital belongings.

Learn extra https://t.co/2B9TYw070h pic.twitter.com/8erscG99JO

— Monetary Providers GOP (@FinancialCmte) August 15, 2023

Associated: Blockchain Affiliation requires investigation into Prometheum over alleged ‘sweetheart’ SEC deal

Prometheum, based in 2017, had been largely unknown to many members of the crypto area previous to its co-founder and co-CEO Aaron Kaplan testifying earlier than the Home committee in June. The agency acquired an SPBD in Might, prompting many crypto advocacy teams and lawmakers to query its services and products, and in some instances name for an investigation.

The Home committee members requested the SEC and FINRA present paperwork and communication data associated to Prometheum’s SPBD earlier than Aug. 22. As well as, the lawmakers referred to as on FINRA to reply particular questions associated to Prometheum, alleging the agency might have had ties to the Chinese language Communist Occasion.

Journal: Crypto regulation: Does SEC Chair Gary Gensler have the ultimate say?