Republican lawmakers once again raised eyebrows over the controversial crypto firm Prometheum, demanding clarity from the U.S. Securities and Exchange Commission (SEC) on Wednesday over how the firm will comply with a novel framework from the agency.The SEC introduced a framework for so-called special purpose broker-dealers (SPBDs) in 2020, and the designation allows firms to facilitate the trading of digital asset securities. Though it has not fully realized that vision yet, Prometheum is one of the sole firms to receive such a registration.In a Prometheum, as a market ecosystem for digital asset securities, said Monday that it had #NEW: Chairman @PatrickMcHenry, @RepFrenchHill, and @RepHuizenga sent a letter to @SECGov Chair Gary Gensler demanding more information on Prometheum’s plans to custody ETH given regulatory uncertainty surrounding its classification. Read more https://t.co/AERelaU54M pic.twitter.com/VpvG8whH42— Financial Services GOP (@FinancialCmte) May 22, 2024“Prometheum’s announcement that it will offer custody services for ETH [raises] a number Last year, the House Financial Services Committee described Prometheum’s crypto gambit as “As the agency faces pressure over how it regulates crypto, Prometheum co-CEO Aaron Kaplan’s testimony before Congress last year aligned with the SEC’s stance that a pathway toward compliance exists for crypto firms—as many other firms have argued compliance isn’t feasible.The Republican lawmakers argued Wednesday that the SEC has refused to provide them with any answers related to Prometheum. A response from the SEC last month failed to sufficiently describe how the firm will comply with its special purpose broker-dealer license, they argued.In a lawsuit filed by the Ethereum software giant Consensys in April, the firmEdited by Andrew Hayward
