Amidst the present hostility in the direction of the digital asset trade, the Blockchain Affiliation has taken motion by submitting a letter to the USA Securities and Alternate Fee’s (SEC) Inspector Basic, urging an investigation into the circumstances surrounding Prometheum.
The investigation outcomes from Prometheum allegedly receiving favorable regulatory standing from the SEC. Marisa Tashman Coppel, Senior Counsel of the Blockchain Affiliation, has raised questions on this resolution.
Blockchain Affiliation desires Prometheum questioned
Within the letter dated July 12, the Blockchain Affiliation requested that SEC inspector basic Deborah Jeffrey look into the approval of Prometheum’s particular function broker-dealer license (SPBD) by the Monetary Trade Regulatory Authority.
The affiliation additionally expressed issues about how co-CEO Aaron Kaplan secured a seat to testify earlier than the U.S. Home Monetary Providers Committee in June.
Within the letter, the advocacy group highlighted its issues concerning Prometheum’s capacity to acquire the SPBD license in Could 2023, given the continued uncertainty surrounding the appliance of United States securities legal guidelines to crypto companies.
Additionally they identified that Prometheum’s change in public stance from calling for regulatory readability from the SEC in April 2021 to claiming {that a} clear pathway to registration for digital belongings exists and laws is pointless was notably “regarding.”
This comes after an announcement in June that the advocacy group submitted a Freedom of Info Act (FOIA) request looking for paperwork and communications about Prometheum’s license. The next name for an investigation into Prometheum stemmed from this FOIA request made by the advocacy group.
SEC sues Binance and Coinbase
The neighborhood is going through quite a few uncertainties. One pertains to current authorized actions taken by the SEC towards two main exchanges, Binance and Coinbase. The lawsuits allege that each corporations operated securities exchanges with out correct registration, violating regulatory necessities. Though the allegations in every case differ, they each share the frequent declare of noncompliance with laws.
The SEC accused Binance, the most important cryptocurrency trade globally, and its founder, Changpeng Zhao, of mishandling buyer funds and unlawfully serving United States traders. Equally, Coinbase, the one publicly-traded crypto trade firm, was charged with working an unregistered securities trade.
Binance and Coinbase have strongly refuted these accusations, sparking debates concerning the ambiguity of crypto trade laws and the absence of clear directives.
