{"id":137491,"date":"2023-09-02T05:39:40","date_gmt":"2023-09-02T00:09:40","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=137491"},"modified":"2023-09-02T05:39:40","modified_gmt":"2023-09-02T00:09:40","slug":"us-lawmakers-press-sec-and-finra-on-prometheums-broker-dealer-approval-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/us-lawmakers-press-sec-and-finra-on-prometheums-broker-dealer-approval-crypto-news\/","title":{"rendered":"US lawmakers press SEC and FINRA on Prometheum’s broker-dealer approval – Crypto News"},"content":{"rendered":"
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United States lawmakers on the House Financial Services Committee have demanded answers from the heads of the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regarding under what circumstances Prometheum obtained a special purpose broker-dealer license (SPBD).<\/p>\n

In separate letters dated Aug. 9, House committee chair Patrick McHenry and 20 other members wrote<\/a> to SEC chair Gary Gensler and FINRA president and CEO Robert Cook. The lawmakers questioned the \u201ctiming and circumstances\u201d of FINRA approving Prometheum\u2019s SPBD as they were continuing to consider legislative solutions to regulatory gaps on digital assets.<\/p>\n

\u201cWhile Prometheum claims it is the silver bullet for regulated digital asset offerings, it has not yet served a single customer,\u201d claimed the lawmakers. \u201cIt is unclear why FINRA would have chosen to approve a firm with no operating history and no track record of serving customers over all the applications that it has received.\u201d<\/p>\n

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#NEW<\/a>: Chairman @PatrickMcHenry<\/a> led Republicans on the Financial Services Committee in letters to @FINRA<\/a> and @SECGov<\/a> regarding the shady approval of Prometheum as the only Special Purpose Broker-Dealer for digital assets.<\/p>\n

Read more https:\/\/t.co\/2B9TYw070h<\/a> pic.twitter.com\/8erscG99JO<\/a><\/p>\n

\u2014 Financial Services GOP (@FinancialCmte) August 15, 2023<\/a><\/p><\/blockquote>\n

Related: <\/em><\/strong>Blockchain Association calls for investigation into Prometheum over alleged \u2018sweetheart\u2019 SEC deal<\/em><\/strong><\/a><\/p>\n

Prometheum, founded in 2017, had been largely unknown to many members of the crypto space prior to its co-founder and co-CEO Aaron Kaplan testifying before the House committee<\/a> in June. The firm received an SPBD in May, prompting many crypto advocacy groups and lawmakers to question its products and services<\/a>, and in some cases call for an investigation. <\/p>\n

The House committee members requested the SEC and FINRA provide documents and communication records related to Prometheum\u2019s SPBD before Aug. 22. In addition, the lawmakers called on FINRA to answer<\/a> specific questions related to Prometheum, alleging the firm may have had ties to the Chinese Communist Party.<\/p>\n

Magazine: <\/em><\/strong>Crypto regulation: Does SEC Chair Gary Gensler have the final say?<\/em><\/strong><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

United States lawmakers on the House Financial Services Committee have demanded answers from the heads of the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regarding under what circumstances Prometheum obtained a special purpose broker-dealer license (SPBD). In separate letters dated Aug. 9, House committee chair Patrick McHenry and 20 other members […]<\/p>\n","protected":false},"author":2,"featured_media":137492,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-137491","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/137491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=137491"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/137491\/revisions"}],"predecessor-version":[{"id":148403,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/137491\/revisions\/148403"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/137492"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=137491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=137491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=137491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}