United States lawmakers are questioning the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) over why Prometheum has been granted a Special-Purpose Broker-Dealer (SPBD) license.
House Financial Services Committee Republicans questioned FINRA’s CEO Robert Cook, and the SEC’s Chair, Gary Gensler, on Prometheum’s credibility. The letter states,
“While Prometheum claims it is the silver bullet for regulated digital asset offerings, it has not yet served a single customer.”
Lawmakers Raise Concerns About Intent and Security
The public statement on Aug. 15 reveals that Patrick McHenry, the Chairman of the House Financial Services Committee, joined forces with 22 other representatives. Letters to the SEC and FINRA question the rationale behind Prometheum’s authorization as an SPBD.
Approval as an SPBD grants the ability to custody of digital securities. Upon obtaining FINRA authorization, firms gain permission to buy, sell and store digital asset securities.
The Committee question why only Prometheum has received approval as an SPBD, despite having yet to serve any customers. All the while, other crypto firms with a customer base are yet to receive approval.
To learn more about crypto brokers, read BeInCrypto’s guide: 4 Best Crypto Brokers for Buying and Selling Bitcoin in 2023
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Author: Ciaran Lyons
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