Prometheum, among the select cryptocurrency firms granted approval by U.S. financial regulators as a Special Purpose Broker-Dealer (SPBD) for digital asset securities, has announced its intention to offer institutional custody services for Ethereum.
In a report published on February 7, as cited by X, Prometheum outlined its plans to categorize Ethereum as a security for custody services on its platform. The company's attainment of FINRA approval in May 2023 suggests compliance with several guidelines established by the U.S. Securities and Exchange Commission (SEC) concerning the trading of crypto-asset securities.
Prometheum's website indicates its support for trading certain digital asset securities, currently exclusive to cryptocurrency exchanges, through its Alternative Trading System (ATS). By positioning Ethereum within the security asset class, Prometheum aims to provide investors with the benefits of portfolio diversification, accompanied by the regulatory safeguards offered by securities laws.
The response from the SEC regarding Prometheum's initiative to offer Ethereum as a security remains uncertain. SEC Chairman Gary Gensler evaded questions regarding the classification of ETH as a security during a hearing in April 2023. When approached for comment, Prometheum co-CEO Aaron Kaplan had yet to respond as of the time of publication.
Amidst its recent approval of spot Bitcoin on January 10, the SEC is facing mounting pressure to reach a verdict on the potential listing and trading of spot ETH exchange-traded funds (ETFs) by various asset managers. Speculation suggests that a decision may be forthcoming before May 23, which marks the deadline for VanEck's proposal for spot ETH ETFs.
