A group of members from the US House Financial Services Committee have directed questions to the heads of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) regarding how Prometheum obtained a 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. The lawmakers have raised concerns about the "timing and circumstances" of FINRA's approval of Prometheum' s SPBD license, as they continue to deliberate legal solutions for regulatory gaps in the digital asset sector.
The lawmakers pointed out that Prometheum, despite claiming to offer regulated digital asset products, hasn't yet served any clients. They questioned why FINRA would approve a company with no operational history and requested documents and communications related to the Prometheum um SPBD license by August 22 .
Prometheum, which was founded in 2017, garnered more attention after its co-founder and co-CEO Aaron Kaplan tested before a House committee in June. The company secured an SPBD license in May, prompting scrutiny and inquiries from cryptocurrency advocacy group ps and lawmakers, some of whom even called for investigations.
Lawmakers also emphasized their concerns about potential connections between Prometheum and the Chinese Communist Party. The company's co-CEO, Aaron Kaplan, has denied allegations of such ties in the past. In response, a Prometheum spokesperson stated that the SEC had concl uded its investigation into The company's previous relationship with Shanghai Wanxiang Blockchain and alleged ties to the Chinese Communist Party.
The committee members' letters reflect the ongoing efforts to ensure transparency and regulatory compliance within the evolving digital asset industry.
