Blockchain Association Urges SEC Investigation into Prometheum’s Alleged Favorable Treatment
The Blockchain Association, a crypto advocacy group based in the United States, has sent a letter to the U.S. Securities and Exchange Commission’s (SEC) Office of Inspector General, calling for an investigation into Prometheum, a cryptocurrency firm. In the letter dated July 12, the association expressed concerns about the approval of Prometheum’s special purpose broker-dealer (SPBD) license by the Financial Industry Regulatory Authority (FINRA). The group also raised questions about how Prometheum’s co-CEO, Aaron Kaplan, secured a seat to testify before the U.S. House Financial Services Committee in June.
The Blockchain Association finds it troubling that Prometheum obtained an SPBD license in May 2023, given the uncertainties surrounding the application of U.S. securities laws to crypto companies. The association highlighted the shift in Prometheum’s public stance, from seeking regulatory clarity from the SEC in April 2021 to claiming that a clear path to registration for digital assets exists and that legislation is unnecessary.
Expressing concerns over potential preferential treatment, the association stated, “We are concerned that the Commission granted Prometheum a ‘sweetheart’ deal in exchange for support of the Commission’s policy goals, or that Prometheum is leveraging personal connections with the Commission to gain an unfair advantage in the market.” Furthermore, the association raised suspicions that SEC Chair Gary Gensler may be using Prometheum and the SPBD licensure process to hinder congressional efforts towards legislation by spreading a false narrative that the law is already clear regarding digital asset securities.
The call for an investigation into Prometheum comes after the Blockchain Association filed a Freedom of Information Act request in June, seeking documents and communications related to the firm’s license. However, the association claimed that it is still awaiting answers regarding the requested information.
Cointelegraph reached out to Aaron Kaplan for comment but did not receive a response as of the time of publication. Additionally, some U.S. lawmakers have separately called for investigations by the Department of Justice and the SEC into alleged connections between Prometheum and China-based firms, which is unrelated to the Blockchain Association’s allegations.
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