Some Republican lawmakers are raising concerns with the SEC about the timing of a special broker-dealer license granted to digital asset company Prometheum.
These concerns by lawmakers are on the agenda of lawmakers working to regulate crypto.
Some Republican lawmakers are uncomfortable with the SEC’s license to Prometheum
Prometheum attracted attention with a special broker-dealer license it obtained from the Financial Industry Regulatory Authority (FINRA), which is overseen by the SEC. This license authorizes the custody of digital asset securities. This development is being watched closely by some Republican lawmakers working on crypto regulation.
House Financial Services Committee Chairman Patrick T. McHenry wrote a letter to Securities and Exchange Commission Chairman Gary Gensler requesting that the documents pertaining to Prometheum’s license approval be delivered. McHenry said the timing of the approval of the Prometheum license came amid debates by committees working on digital asset regulations, raising serious questions.
In his letter, McHenry also expressed concerns that Prometheum’s license approval indicates that there is no need for regulation of the custody of digital asset securities. He also expressed concerns about Prometheum’s ties to the Chinese Communist Party.
Prometheum has stated in the past that they want to create a crypto trading platform that operates digital asset securities in accordance with current securities laws. However, this initiative has caused controversy in the crypto industry.
In a letter to FINRA Chairman Robert Cook, McHenry also asked the steps he had taken to assess the risk posed by Prometheum’s ties to the Chinese Communist Party. Lawmakers also asked FINRA for information on Prometheum’s application and how such applications work.
