Republican lawmakers ask SEC for documents related to Prometheum license

Author: TURNER WRIGHT, COINTELEGRAPH; Compiler: Songxue, Jinse Finance

Members of the US House Financial Services Committee have asked the heads of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) for answers on how Prometheum obtained its special purpose broker-dealer (SPBD) license.

House Committee Chairman Patrick McHenry and 20 other members sent separate letters to SEC Chairman Gary Gensler and FINRA President and CEO Robert Cook on August 9. ** Lawmakers questioned the "timing and circumstances" of FINRA's approval of the Prometheum SPBD license as they continue to consider legislative solutions to regulatory gaps in digital assets. **

“While Prometheum claims to be a solution for regulated digital asset products, it has not yet served any clients,” the lawmakers claimed. ** “It is not clear why FINRA would choose to approve a company with no operating history and The firm that provided the client with a record of service in all applications received.”**

Founded in 2017, Prometheum was largely unknown to many members of the cryptocurrency space until its co-founder and co-CEO Aaron Kaplan testified before a House committee in June. ** The company received an SPBD license in May, prompting many cryptocurrency advocacy groups and lawmakers to question its products and services, and in some cases even call for an investigation. **

House committee members are asking the SEC and FINRA to provide documents and communications regarding Prometheum’s SPBD license by Aug. 22.

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