The way Securities and Exchange Commission Chair Gary Gensler is regulating cryptocurrency is a chaotic mess. Digital-coin exchanges are granted approval by the commission to go public, only to later be sanctioned for selling crypto that the agency doesn’t approve of. It’s unclear whether Gensler actually has the legal authority to intervene in this manner, but that hasn’t stopped him from pursuing numerous cases. However, there’s a strong argument to be made that Gensler’s regulatory agenda is not only dangerous due to its potential impact on the revolutionary blockchain technology, but also because the SEC itself has been displaying incompetence. A prime example of this is the case of Prometheum, a company that critics claim has managed to slip through the cracks of the SEC to become a major player in the trillion-dollar crypto business. The co-founder of Prometheum, Aaron Kaplan, recently made headlines when he was given a prominent speaking spot during a House Financial Services Committee crypto hearing. It’s worth noting that Gensler is known for his dislike of crypto, but apparently has a soft spot for Prometheum, as his SEC granted the company the status of the first “special purpose broker-dealer for digital assets.” This designation is highly sought after, as it allows companies like Prometheum, FTX, and Robinhood to buy and sell crypto for clients without facing repercussions from the SEC. However, some believe that Robinhood and Coinbase should have been granted this status as well, considering their position in the market and their successful completion of the SEC’s IPO disclosure process. Prometheum, on the other hand, is a privately owned company with only a handful of employees. While there are no regulatory infractions on record for Prometheum, there are concerns regarding its ties to a Chinese outfit called “HashKey” and its chairman, Dr. Feng Xiao, who is also affiliated with the Chinese Communist Party. These ties have raised concerns among Republicans regarding investor protection, data privacy, and national security. Prometheum’s CEO, Aaron Kaplan, insists that the company has severed its connections with its Chinese partners and that it is fully American-controlled. Interestingly, Gensler has praised Prometheum for seeking proper registration with the SEC and agreeing not to trade crypto assets that violate the law. However, many in the crypto community remain skeptical and question why the SEC favors Prometheum and what the company actually does. Despite the lack of clarity, it is important to ensure that Gensler does not overlook potential issues, as was the case with FTX.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
