The US Securities and Exchange Commission (SEC) is facing a potential investigation regarding its approach to digital assets and its alleged "sweet deal" with crypto platform Prometheum. US Representative Ritchie Torres has sent a request to the SEC Inspector General and the Government Account ability Office Comptroller, expressing concerns about the SEC's lack of clarity in applying securities laws to digital assets.
Torres criticized the SEC for its enforcement-oriented approach rather than providing clear rules or guidance. He specifically highlighted the SEC's decision in May to grant a special broker-dealer license to Prometheum, a digital asset platform founded by two US financial la wyers. Torres questioned The legitimacy of Prometheum as a real trading platform for cryptocurrency customers, referring to it as a "Potemkin platform" used to criticize cryptocurrencies rather than serving genuine trading purposes.
Prometheum has faced scrutiny within the crypto industry, and Torres has previously called for an investigation into the company. The spotlight on Prometheum intensified after co-founder Aaron Kaplan tested before Congress in June, expressing support for the SEC's regulatory strategy gy. Speculation surrounding Prometheum's potential ties to Chinese investors emerged on Twitter following the hearing, prompting the Blockchain Association to request information from the SEC about the company.
In July, six US lawmakers called on the SEC to investigate Prometheum's alleged connections to the Chinese Communist Party. This latest request by Torres raises concerns not only about Prometheum but also about the SEC's failure to establish a viable registration process for digital asset platforms. has urged a review of the SEC's overall approach to digital assets and its handling of Prometheum's licensing, questioning whether the agency is adequately fulfilling its regulatory responsibilities in the crypto space.
