Blockchain Association calls for investigation into Prometheum over alleged 'sweetheart' SEC deal

The United States-based crypto advocacy radical Blockchain Association has submitted a missive to the Securities and Exchange Commission’s (SEC) Office of Inspector General calling for an probe into crypto steadfast Prometheum.

In a July 12 letter, the Blockchain Association requested SEC inspector wide Deborah Jeffrey look into the Financial Industry Regulatory Authority’s support of Prometheum’s peculiar intent broker-dealer licence (SPBD). The radical besides raised concerns astir the means by which co-CEO Aaron Kaplan secured a seat testifying earlier the U.S. House Financial Services Committee successful June.

The advocacy radical said the information Prometheum had been capable to get a SPBD licence successful May 2023 was “concerning” fixed the uncertainty astir U.S. securities laws applying to crypto firms. According to the Blockchain Association, Prometheum changed its nationalist presumption of calling for regulatory clarity from the SEC successful April 2021 to claiming “there exists a wide pathway to registration for integer assets and authorities is unnecessary”.

“We are acrophobic that the Commission granted Prometheum a ‘sweetheart’ woody successful speech for enactment of the Commission’s argumentation goals, oregon that Prometheum is leveraging idiosyncratic connections with the Commission to summation an unfair vantage successful the market,” said the association. “Most significantly, we are acrophobic that Chair Gensler is utilizing Prometheum and the SPBD licensure process arsenic a means to thwart legislature efforts toward authorities by continuing to dispersed the mendacious communicative that the instrumentality is already wide with respect to integer plus securities.”

1/ Today, @blockchainassn submitted a missive to the SEC Office of Inspector General requesting the OIG unfastened an probe into imaginable impropriety surrounding the support of Prometheum arsenic a first-of-its-kind Special Purpose Broker-Dealer.@KMSmithDC stated: pic.twitter.com/dVtTs0yMEg

Related: Blockchain Association seeks info from Fed, FDIC and OCC connected ‘de-banking’ crypto firms

The telephone for an probe into Prometheum followed a Freedom of Information Act petition from the advocacy radical successful June seeking documents and communications related to the firm’s license. According to the Blockchain Association, it was inactive “waiting for answers” regarding the information.

Cointelegraph reached retired to Prometheum co-CEO Aaron Kaplan but did not person a effect astatine the clip of publication. Several U.S. lawmakers person besides called for a Department of Justice and SEC investigation into Prometheum implicit alleged ties to China-based firms, which seemingly has nary transportation to the Blockchain Association’s allegations.

Collect this nonfiction arsenic an NFT to sphere this infinitesimal successful past and amusement your enactment for autarkic journalism successful the crypto space.

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