In a recent development, Republican lawmakers on the U.S. congressional committee responsible for overseeing the Securities and Exchange Commission (SEC) have intensified their scrutiny of the agency’s crypto approval process.
Led by Chair Patrick McHenry, 23 House Financial Services Committee lawmakers have sent a letter to SEC Chair Gary Gensler, demanding an explanation regarding Prometheum’s approval as a crypto broker-dealer.
Lawmakers Allege Strategic Move Via Prometheum’s Crypto Approval
Their inquiry focuses on Prometheum’s status as a special purpose broker-dealer (SPBD) for “crypto securities.”
Introduced by the SEC in December 2020, the SPBD framework was designed to enable custody and transactions involving digital asset securities. Notably, the Financial Industry Regulatory Authority (FINRA) approval is a prerequisite for SPBDs to operate, and until May 17, 2023, no SPBD had received such approval.
The…
