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Senators demanded that the SEC explain the activities of Prometheum

Forklog / 27.03.2024 / 07:11
Senators demanded that the SEC explain the activities of Prometheum

Several members of the US House of Representatives sent a letter to the SEC demanding an explanation of the legality of the cryptocurrency operations of the digital asset broker Prometheum.< /p>

In February, the company announced plans to store Ethereum for its clients. The launch of the service is planned for the second quarter. 

The senators, most of whom are Republicans, stated in the document that ETH is not a security and therefore its use in Prometheum operations is illegal. 

Lawmakers also criticized SEC Chairman Gary Gensler's reluctance to explicitly call Ethereum a security.

“Your reluctance to clarify the treatment of ETH only adds to the confusion and uncertainty regarding the classification of the asset, as evidenced by the Prometheum announcements,” the letter said.

Gensler has repeatedly cited Prometheum as an example of a firm seeking to overcome the necessary regulatory restrictions to legally handle cryptocurrencies in the United States. 

Representatives of the brokerage company stated that their job does not include registering assets that will be stored and sold as part of the business.

Ember Capital, a member of Prometheum, was the first to receive a special-purpose license to provide services related to digital securities.

“Allowing one market participant and regulator to dictate the future of digital assets through coercion is unacceptable,” lawmakers say.

In July 2023, US Republican Senator Tommy Tuberville called on the Department of Justice and the SEC to study the activities of Prometheum. He suspected the company's CEO, Aaron Kaplan, of lying under oath during congressional hearings and violating securities laws.

Previously, US senators asked the Commission not to allow the approval of new crypto ETFs, pointing out the “huge risks” of the instrument.

Recall that in March 2024, the Swiss-registered non-profit organization Ethereum Foundation allegedly received a confidential request from an unnamed “government body” regarding the status of ETH.

https://forklog.com/news/kak-ataka-na-ethereum-foundation-povliyaet-na-odobrenie-eth-etf-razbor-ot-forklog
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