Close Menu
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain
  • NFT
  • Metaverse
  • Analysis
  • Learn
  • Blog
  • Contact
    • Tech7685@gmail.com
What's Hot

Trader warns Bitcoin (BTC) blinking bearish signal, says gold that steam collects for the next leg up

2025-05-20

Ethereum’s latest movements: profitable versus accumulation

2025-05-20

Robinhood calls on SEC to set up a uniform regulation framework for Tokenized Rwas

2025-05-20
Facebook X (Twitter) Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
Facebook X (Twitter) Instagram
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain

    Adventure Layer is launched as First Gaming L2 on Berachain

    2025-05-20

    Arbitrum affects $ 1.5 billion volume milestone on Uniswap V4

    2025-05-20

    BSCS Backs Backs AI-conducted shopping assistant in collaboration with Pulsebot AI

    2025-05-20

    Basic, BNB chain, Ethereum and others

    2025-05-20

    What are tokenized real-world assets? Put physical value on the chain with RWAS

    2025-05-20
  • NFT

    Guild of Guardians leads with a huge volume of $ 796.62k

    2025-05-20

    Solana Meme Coin Ponke Set to release assembly objects, clothing via Jcorp Spinout

    2025-05-19

    The most popular collections of the moment on blockchain

    2025-05-18

    Raoul Pal sees NFT market exploding when Ethereum Bull Cycle is approaching

    2025-05-17

    Ethereum is at the top of the charts in weekly NFT sales with $ 44.7 million in sales volume

    2025-05-16
  • Metaverse

    Shib: The Metaverse – Part of the expanding Shiba Inu ecosystem

    2025-01-03

    Experience to Earn: Everdome’s Metaverse Frontier

    2024-12-30

    Beyond Bots: Meta Motivo and the Dawn of Human Digital Life

    2024-12-13

    Exploring NetVRk: What’s Behind This AI-Powered Virtual Universe?

    2024-10-28

    Council of Europe emphasizes the impact of Metaverse on privacy and democracy

    2024-09-05
  • Analysis

    Trader warns Bitcoin (BTC) blinking bearish signal, says gold that steam collects for the next leg up

    2025-05-20

    XRP -Price will still gather here, crypto -veteran Raoul Pal predicts

    2025-05-20

    Milei closes Libra Task Force and investigates ties with its administration

    2025-05-20

    Ethereum -price flashes bullish signal, but can it flow through obstacles?

    2025-05-20

    XRP Price Eyes Winins, but technically suggests that upsides can be limited

    2025-05-20
  • Learn

    Types of Blockchain Layers Explained: Layer 0, Layer 1, Layer 2 and Layer 3

    2025-05-16

    Token vs. Coin: Key Differences You Must Know as a Beginner

    2025-05-15

    Inside Changelly: 10 years of steadfast support and compliance

    2025-05-15

    What Is Proof-of-Work (PoW)?

    2025-05-12

    What Is Proof-of-Authority (PoA)?

    2025-05-10
  • Blog
  • Contact
    • Tech7685@gmail.com
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
Home»Regulation»The SEC’s Strange Choice: Exposing Prometheum
The SEC’s odd pick: Unmasking Prometheum
Regulation

The SEC’s Strange Choice: Exposing Prometheum

2023-07-02No Comments5 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

The following is a guest post from Hamilton Keats, CEO and co-founder of Krayon Digital.

In an effort to demonstrate that there is a way forward for crypto companies within the existing regulatory framework, the SEC invited Prometheum to the House Financial Services Committee hearing on digital assets.

This hitherto relatively unknown company is being put forward by the SEC as an example of compliance, but Prometheum’s background is vague. It is alleged that the company is connected to multiple crypto scams and may be funded by the Chinese Communist Party (CCP) 😲.

The timing of this hearing ties in with a season of intense SEC investigations against other companies that have pursued regulatory dialogue — companies that arguably deserve a better chance than Prometheum of operating within a compliant framework.

Let’s unpack this bizarre sequence of events

On June 13, the House Financial Services Committee held a hearing on “The Future of Digital Assets: Bringing Clarity to the Digital Asset Ecosystem.”

Aaron Kaplan, co-CEO of Prometheum, was invited to testify before the committee. Until this week, Prometheum was relatively unknown in the crypto world.

During Kaplan’s testimony, it became clear that his answers were scripted. Committee members and viewers alike questioned his credibility; his answers echoed the SEC’s existing narrative. as Scott Johnson noticed:

“Wow, the CEO of Prometheum, whose only qualification is to lead a dedicated digital securities ATS/BD, seems to have a lot of opinions on unrelated topics like banking principles/stablecoins – or at least his pre-written notes curiously respond to any Dem question. ”

Who exactly is Prometheum and why are they relevant to this committee?

In the midst of the SEC’s lawsuit against Coinbase and Binance, Prometheum received approval for a unique Special Purpose Broker-Dealer (SPBD) license for digital asset securities. According to Kaplan, this license represents a compliant path for crypto companies, suggesting no need for updated regulations and securities laws.

See also  Coinbase CEO Brian Armstrong Says SEC's Spot Bitcoin ETF Approvals Will Attract New Capital Pools To Crypto

Commissioner John Roos questionable Arron Kaplan quotes:

“Gensler’s approval of this one special purpose broker dealer license doesn’t mean the current system works. Why? Because an ATS cannot facilitate trading in unregistered securities that are not offered under a valid exemption. In addition, Gensler and the Democrats and apparently Mr. Kaplan claim that almost all tokens are unregistered securities, so this approval does nothing for private investors and the general public… Isn’t it true that there are currently no registered digital assets with real customers? demand and liquidity. For example, can an ATS offer Solana or Cardano, which the SEC recently claimed are unregistered securities, to retail, non-accredited investors on its ATS today?”

The answer is a resounding no. However, the proposed legislation would allow an ATS to list and trade digital assets alongside stable payment coins and digital commodities.

Getting worse

A special purpose broker-dealer cannot currently hold both digital assets and commodities on the same platform on behalf of retail investors. With the existing law classifying digital assets as securities or commodities, it essentially renders the SPBD license useless.

In addition, the SEC has suggested they expect digital assets to be registered by promoters, a non-issue in a world of open source projects with anonymous or pseudonymous founders.

There are currently zero tokens registered with the SEC because the existing regime is unfeasible for public blockchain networks.

Existing regulations do not allow licensed broker-dealers to operate in the digital asset space. Representative Mike Flood refuted Prometheum’s statements at the hearing as sheer nonsense. Prometheum’s clients can’t even trade BTC and ETH, which make up 60% of the digital asset market.

See also  The US government adds $204,273,438,011 to the national debt on the first day of the new fiscal year

As Mike Flood put it:

“If the current system works, why can’t your clients trade the most popular and widely used digital assets?”

The obvious answer is that it isn’t, and Prometheum’s claims that law changes aren’t necessary just don’t make sense.

Why is Prometheum hindering regulatory improvements?

If Prometheum is reportedly working to establish a broker-dealer business in the digital asset space, why are they obstructing proposed regulatory improvements that would benefit the industry?

Enter Prometheum Chain: Prometheum’s trade L1 has his sign that has already been sold to members of the Chinese Communist Party (CCP) (laughing emoji).

Prometheum has almost grown up $50 million in funding to date. During the fundraising process, they used a New Jersey-based boutique investment bank, Network 1 Financial Securities – a company with an unscrupulous track record, including more than 20 regulatory or civil suits against them, and further ties to the CCP.

Perhaps we should assume that credible securities experts manage Prometheum…

Well, that’s another no. Prometheum is run by the Kaplan family, which includes Aaron and Benjamin Kaplan, lawyers by profession who went through a now-unrecognized law school before joining their father’s law firm.

How did a family of lawyers become the first firm to be approved for an SPBD license and end up on the committee testifying for the SEC’s current approach to crypto regulation?

Why don’t real companies get a fair chance?

Apparently hiring ex-SEC staffers goes a long way to getting licensed. The team at Prometheum includes Rosemarie Fanelli, a former NYSE and FINRA employee; John Tornatore of CBOE; and Joseph Zangri, their Chief Compliance Officer, was previously a Senior Enforcement Attorney for the SEC.

See also  Uniswap Labs, VC backers cleared of liability in scam token case as judge dismisses complaint

This tangled web of convoluted narratives and potential improprieties begs the question: Is the deck stacked against the real advancement of blockchain technology and digital assets in the face of current regulations? Why don’t real companies like Coinbase and Kraken get a real chance?


Hamilton Keats is CEO and co-founder of Krayon Digital, a provider of MPC-based digital asset portfolios for SMBs. Prior to building the Web3 infrastructure with Krayon, Hamilton co-founded Platform One, a London-based asset management platform, and worked at HSBC and DVB Bank. He has a BSc in physics from Imperial College London. Twitter



Source link

choice Exposing Prometheum SECs strange
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Robinhood calls on SEC to set up a uniform regulation framework for Tokenized Rwas

2025-05-20

The US Senate promotes ingenious stabilecoin legislation despite the democratic opposition

2025-05-20

The Supreme Court of India calls for clear crypto guidelines not outright prohibition

2025-05-20

‘Very resilient’ American economy under three reasons that Fed will not lower in 2025: Yardeni Research

2025-05-20
Add A Comment
Leave A Reply Cancel Reply

Top Posts

Solana’s book makes history: will SOL follow suit?

2023-12-17

WIF rises by 29.74% while trading volume increases by 116.2%

2024-09-25

Hashkey affiliate wallet sells over $90 million ETH in 10 days

2023-11-19
Editors Picks

Eden Upgrade (v0.50) improves the performance of the Cosmos SDK chain

2023-11-11

Animoca Brands Japan Launches Its NFT Launchpad ‘SORAH’

2024-05-31

Ethereum Price See “Liftoff” If It Can Hold One Crucial Level

2023-05-11

Openfabric AI and SPACE ID: a transformative collaboration

2023-12-10
About
About

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, Defi, NFT, Metaverse and more.

We're social. Connect with us:

Facebook X (Twitter) Instagram Pinterest YouTube
Top Insights

Trader warns Bitcoin (BTC) blinking bearish signal, says gold that steam collects for the next leg up

Ethereum’s latest movements: profitable versus accumulation

Robinhood calls on SEC to set up a uniform regulation framework for Tokenized Rwas

Get Informed

Subscribe to Updates

Get the latest news and Update from Free.cc about Crypto, Metaverse, NFT and more.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
© 2025 Free.cc - All rights reserved. Contact: info@free.cc

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$106,935.520.85%
  • ethereumEthereum(ETH)$2,541.32-1.09%
  • tetherTether USDt(USDT)$1.000.02%
  • rippleXRP(XRP)$2.36-1.12%
  • binancecoinBNB(BNB)$652.550.27%
  • solanaSolana(SOL)$168.86-0.80%
  • usd-coinUSDC(USDC)$1.000.01%
  • dogecoinDogecoin(DOGE)$0.2299001.32%
  • cardanoCardano(ADA)$0.750.34%
  • tronTRON(TRX)$0.2697100.80%
  • suiSui(SUI)$3.84-0.81%
  • chainlinkChainlink(LINK)$15.80-2.54%
  • avalanche-2Avalanche(AVAX)$22.46-0.28%
  • stellarStellar(XLM)$0.2876260.00%
  • hyperliquidHyperliquid(HYPE)$26.41-2.01%
  • shiba-inuShiba Inu(SHIB)$0.000015-0.65%
  • hedera-hashgraphHedera(HBAR)$0.194173-1.35%
  • unus-sed-leoUNUS SED LEO(LEO)$8.780.91%
  • bitcoin-cashBitcoin Cash(BCH)$395.06-0.40%
  • the-open-networkToncoin(TON)$3.060.14%
  • polkadotPolkadot(DOT)$4.700.31%
  • litecoinLitecoin(LTC)$94.27-4.45%
  • moneroMonero(XMR)$359.343.93%
  • bitget-tokenBitget Token(BGB)$5.18-0.43%
  • pepePepe(PEPE)$0.0000130.15%
  • piPi(PI)$0.786.29%
  • daiDai(DAI)$1.00-0.01%
  • ethena-usdeEthena USDe(USDE)$1.000.02%
  • aaveAave(AAVE)$258.44-2.41%
  • uniswapUniswap(UNI)$6.070.70%
  • bittensorBittensor(TAO)$416.34-0.04%
  • nearNEAR Protocol(NEAR)$2.80-0.97%
  • aptosAptos(APT)$5.15-2.12%
  • okbOKB(OKB)$52.16-1.04%
  • ondo-financeOndo(ONDO)$0.94-0.74%
  • kaspaKaspa(KAS)$0.1099410.16%
  • official-trumpOFFICIAL TRUMP(TRUMP)$14.2410.33%
  • internet-computerInternet Computer(ICP)$5.27-0.42%
  • ethereum-classicEthereum Classic(ETC)$18.47-1.50%
  • gatechain-tokenGateToken(GT)$21.48-0.57%
  • crypto-com-chainCronos(CRO)$0.096776-0.39%
  • mantleMantle(MNT)$0.741.09%
  • vechainVeChain(VET)$0.028501-0.01%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.232130-1.31%
  • render-tokenRender(RENDER)$4.65-0.77%
  • ethenaEthena(ENA)$0.380836-1.29%
  • usd1World Liberty Financial USD(USD1)$1.000.02%
  • arbitrumArbitrum(ARB)$0.3987720.27%
  • algorandAlgorand(ALGO)$0.224614-0.07%
  • filecoinFilecoin(FIL)$2.87-0.70%
  • bitcoinBitcoin(BTC)$106,935.520.85%
  • ethereumEthereum(ETH)$2,541.32-1.09%
  • tetherTether USDt(USDT)$1.000.02%
  • rippleXRP(XRP)$2.36-1.12%
  • binancecoinBNB(BNB)$652.550.27%
  • solanaSolana(SOL)$168.86-0.80%
  • usd-coinUSDC(USDC)$1.000.01%
  • dogecoinDogecoin(DOGE)$0.2299001.32%
  • cardanoCardano(ADA)$0.750.34%
  • tronTRON(TRX)$0.2697100.80%
  • suiSui(SUI)$3.84-0.81%
  • chainlinkChainlink(LINK)$15.80-2.54%
  • avalanche-2Avalanche(AVAX)$22.46-0.28%
  • stellarStellar(XLM)$0.2876260.00%
  • hyperliquidHyperliquid(HYPE)$26.41-2.01%
  • shiba-inuShiba Inu(SHIB)$0.000015-0.65%
  • hedera-hashgraphHedera(HBAR)$0.194173-1.35%
  • unus-sed-leoUNUS SED LEO(LEO)$8.780.91%
  • bitcoin-cashBitcoin Cash(BCH)$395.06-0.40%
  • the-open-networkToncoin(TON)$3.060.14%
  • polkadotPolkadot(DOT)$4.700.31%
  • litecoinLitecoin(LTC)$94.27-4.45%
  • moneroMonero(XMR)$359.343.93%
  • bitget-tokenBitget Token(BGB)$5.18-0.43%
  • pepePepe(PEPE)$0.0000130.15%
  • piPi(PI)$0.786.29%
  • daiDai(DAI)$1.00-0.01%
  • ethena-usdeEthena USDe(USDE)$1.000.02%
  • aaveAave(AAVE)$258.44-2.41%
  • uniswapUniswap(UNI)$6.070.70%
  • bittensorBittensor(TAO)$416.34-0.04%
  • nearNEAR Protocol(NEAR)$2.80-0.97%
  • aptosAptos(APT)$5.15-2.12%
  • okbOKB(OKB)$52.16-1.04%
  • ondo-financeOndo(ONDO)$0.94-0.74%
  • kaspaKaspa(KAS)$0.1099410.16%
  • official-trumpOFFICIAL TRUMP(TRUMP)$14.2410.33%
  • internet-computerInternet Computer(ICP)$5.27-0.42%
  • ethereum-classicEthereum Classic(ETC)$18.47-1.50%
  • gatechain-tokenGateToken(GT)$21.48-0.57%
  • crypto-com-chainCronos(CRO)$0.096776-0.39%
  • mantleMantle(MNT)$0.741.09%
  • vechainVeChain(VET)$0.028501-0.01%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.232130-1.31%
  • render-tokenRender(RENDER)$4.65-0.77%
  • ethenaEthena(ENA)$0.380836-1.29%
  • usd1World Liberty Financial USD(USD1)$1.000.02%
  • arbitrumArbitrum(ARB)$0.3987720.27%
  • algorandAlgorand(ALGO)$0.224614-0.07%
  • filecoinFilecoin(FIL)$2.87-0.70%