Ethereum
Prometheum launches Ethereum Custody as a security offering
Digital asset platform Prometheum has soft launched Ethereum custody service as it plans to fully launch crypto services later this quarter. Fortune first reported the launch of the product, the first of its kind in the digital currency ecosystem.
Prometheum’s position on Ethereum
Prometheum emerged into the digital currency ecosystem based on its controversial stance regarding the security status of many assets, including Ethereum. The soft launch of Prometheum’s Ethereum custodial service considers Ethereum a registered security under applicable federal laws.
While many have argued that it is generally impossible to classify assets like Ethereum as collateral, Prometheum has done so. Many industry executives have also claimed that it is somewhat impossible to register with the U.S. Securities and Exchange Commission (SEC). Prometheum was successful in gaining approval.
Prometheum first selected Ethereum as the first asset to feature in its Guard Service in February. The platform’s co-founder, Aaron Kaplan, is considered by many to be a major proponent or supporter of the US SEC.
“It eliminates a lot of the arguments that things can’t be done under existing laws,” Kaplan said in an interview with Fortune. “This is the first time that…a digital asset title of an investment contract has been maintained and processed under securities laws.”
The Prometheum Ethereum custody service is aimed at asset managers, crypto-focused hedge funds, and banks, among others. With very controversial support from the Financial Industry Regulatory Authority (FINRA) and the SEC, Prometheum is ready to tap into the growing Ethereum ecosystem.
The Ethereum Security Controversy
Prometheum’s launch of Ethereum custody service as security is causing huge concerns in the industry. This launch comes days after the SEC approved or disapproved the Ethereum spot ETF. For a few months now, there have been reports that the US SEC, under its chairman Gary Gensler, would likely classify Ethereum as a security.
If this is achieved, the agency will find a good excuse to refuse the proposals from VanEck and Ark 21Shares this week. However, with the launch of Prometheum’s ETH custody service, the agency may have a viable alternative product to offer.
At present, the chances of product approval are very low, but some market experts believe that there could be something unexpected. last minute approval.
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