Republican members of Congress demand information on Prometheum approval from FINRA, SEC

Financial Services Republicans, led by Chairman Patrick McHenry (NC-10), are inquiring with regulatory agencies regarding the caller support of Prometheum Ember Capital LLC arsenic a chiseled broker-dealer for integer assets. Their inquiries are directed toward the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).

A comparatively chartless institution astatine the opening of 2023, Prometheum’s quality to unafraid SEC support arsenic a registered Special-Purpose Broker-Dealer has drawn scrutiny.

Questions person arisen astir the discourse of Prometheum’s approval, particularly since it came soon aft a associated proceeding by the House Financial Services Committee and the House Agriculture Committee connected integer assets. Some person wondered if the support was intended to show the adequacy of existing regulations for the integer assets sector.

Prometheum’s past collaboration with Shanghai Wanxiang Blockchain Inc. to make blockchain trading bundle has been noted. Although the collaboration ended, the engagement of a Chinese steadfast successful Prometheum’s aboriginal days has been highlighted. Reports suggest that a Chinese entity owns a information of Prometheum, and 1 of their representatives, Feng Ziao, is simply a Director astatine Prometheum. The transportation betwixt Wanxiang and the Chinese Communist Party (CCP) has been mentioned successful narration to concerns astir information privateness and nationalist security.

Prometheum’s Co-CEO Aaron Kaplan’s caller statements person garnered attraction connected societal media. His views, which align intimately with the SEC’s stance, disagree from galore successful the industry. Kaplan’s content successful the sufficiency of Federal Securities Laws for crypto regularisation has been met with differing opinions, particularly since Prometheum has antecedently emphasized the value of wide regulations.

Prometheum’s leadership’s connections with regulatory bodies similar FINRA and the SEC person been discussed. Crypto expert Adam Cochran has suggested that these connections mightiness person influenced Prometheum’s regulatory approvals.

Recent articles bespeak that U.S. lawmakers, including Senator Tommy Tuberville and Members of Congress similar Ralph Norman and Blaine Luetkemeyer, person called for investigations into Prometheum by the DOJ and the SEC. Differences betwixt Prometheum’s statements and its SEC filings, peculiarly regarding its narration with Wanxiang, are among the reasons cited for these calls.