Republican members of Congress demand information on Prometheum...
Republican members of Congress demand information on Prometheum approval from FINRA, SEC

Republican members of Congress demand information on Prometheum approval from FINRA, SEC

Share Tweet Post Share Post Email Financial Services Republicans, led by Chairman Patrick McHenry (NC-10), are inquiring with regulatory agencies regarding the recent approval of Prometheum Ember Capital LLC as a distinct broker-dealer for digital assets. Their inquiries are directed toward the Financial Industry Regulatory Authority ( FINRA ) and the Securities and Exchange Commission ( SEC ). A relatively unknown company at the beginning of 2023, Prometheum’s ability to secure SEC approval as a registered Special-Purpose Broker-Dealer has drawn scrutiny. Questions have arisen about the context of Prometheum’s approval, especially since it came shortly after a joint hearing by the House Financial Services Committee and the House Agriculture Committee on digital assets. Some have wondered if the approval was intended to demonstrate the adequacy of existing regulations for the digital assets sector. Prometheum’s past collaboration with Shanghai Wanxiang Blockchain Inc. to develop blockchain trading software has been noted. Although the collaboration ended, the involvement of a Chinese firm in Prometheum’s early days has been highlighted. Reports suggest that a Chinese entity owns a portion of Prometheum, and one of their representatives, Feng Ziao, is a Director at Prometheum. The connection between Wanxiang and the Chinese Communist Party (CCP) has been mentioned in relation to concerns about data privacy and national security. Prometheum’s Co-CEO Aaron Kaplan’s recent statements have garnered attention on social media. His views, which align closely with the SEC’s stance, differ from many in the industry. Kaplan’s belief in the sufficiency of Federal Securities Laws for crypto regulation has been met with differing opinions, especially since Prometheum has previously emphasized the importance of clear regulations. Prometheum’s leadership’s connections with regulatory bodies like FINRA and the SEC have been discussed. Crypto analyst Adam Cochran has suggested that these connections might have influenced Prometheum’s regulatory approvals. Recent articles indicate that U.S. lawmakers, including Senator Tommy Tuberville and Members of Congress like Ralph Norman and Blaine Luetkemeyer, have called for investigations into Prometheum by the DOJ and the SEC. Differences between Prometheum’s statements and its SEC filings, particularly regarding its relationship with Wanxiang, are among the reasons cited for these calls. Posted In: Regulation Author Jacob Oliver Editor / Reporter at CryptoSlate Jacob Oliver is a recovering academic and English teacher who went down the crypto rabbit hole in 2017 after recognizing the technology's potential. Editor News Desk Editor at CryptoSlate CryptoSlate is a comprehensive and contextualized source for crypto news, insights, and data. Focusing on Bitcoin, macro, DeFi and AI. Latest Report Jobs, food, and oil: The key drivers that could re-accelerate inflation CryptoSlate's latest market report dives deep into the potential forces that will most likely keep inflation rising in the coming months. Andjela Radmilac · 2 days ago Latest prometheum Stories US lawmakers call on DOJ, SEC to investigate Prometheum, citing suspicions of “false testimony” and securities law violations Politics 1 month ago 2 min read The SEC’s odd pick: Unmasking Prometheum Op-Ed Contributor 1 month ago 4 min read Prometheum, a SEC-registered broker-dealer, sets Twitter ablaze with speculation: here’s what you need to know Regulation 2 months ago 4 min read Press Releases // View All Advertise Here Merkel Tree-based Proof of Reserves Data released with New Assets stUSDT and stETH Chainwire 6 hours ago Ethcon Korea 2023: The Ethereum Developer Conference and Hackathon, Now Open for Registration Chainwire 9 hours ago Go!Labs Empowers Global Change Through AI-Powered Engagement and Community Challenges Chainwire 22 hours ago Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

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