- US lawmakers want to know under what circumstances Prometheum obtained its broker-dealer license.
- Congressman Patrick McHenry and more than 20 Republicans sent letters to the SEC and FINRA.
- Republicans are asking for documents on Prometheum activities by August 22, 2023.
Congressman Patrick McHenry and members of the Republican Party of the United States sent a letter to the head of the US Securities and Exchange Commission (SEC) Gary Gensler.
In it, they demand an explanation of how Prometheum Inc. could obtain permission to operate as a broker-dealer of cryptocurrencies.
Prometheum Ember Capital has made history as the 1st SEC-registered broker-dealer and FINRA member firm approved to operate as a Special Purpose Broker-Dealer (SPBD) for digital asset securities. Learn about how we continue to move the industry forward: https://t.co/owwoQbQ4Zd pic.twitter.com/kCySyPg9Qe
” Prometheum (@PrometheumInc) May 23, 2023
Lawmakers also sent a letter to the head of the Financial Industry Regulatory Authority (FINRA), Robert Cook. This group sets and enforces securities standards overseen by the SEC.
Both letters question the “time and circumstances” in which the regulator ruled in favor of Prometheum.
In turn, representatives of the company insist that they went through the registration process step by step, like any other company, according to Coindesk.
In May, Prometheum’s Ember Capital became the first digital asset broker-dealer officially registered by the SEC and FINRA.
Legislators called on the regulator to investigate the company’s activities. They demanded that documents and protocols related to the Prometheum decision be submitted by August 22, 2023.
Back in July, U.S. Rep. Richie Torres demanded a review of the SEC’s activities in connection with the aforementioned broker-dealer’s license.