Ethereum
Prometheum Launches SEC-Compliant Ether Custody Service
Prometheum, a New York-based digital assets company, has launched the first SEC-compliant Ethereum (ETH) custody service, marking another milestone in the industry’s regulatory compliance.
This service deals ETH like a security in accordance with the regulations of the United States Securities and Exchange Commission (SEC).
Ethereum custody service regulated by Prometheum Pioneers
Prometheusknown for his controversial stance on digital assets, begin its ETH custody service with a select group of companies. The full-scale launch is planned for the first week of June. Co-CEO Aaron Kaplan noted that this was the first case where an investment contract involving a digital asset was maintained and processed in accordance with securities laws.
“This launch is an important step toward a regulated and secure digital asset market,” Kaplan said.
Prometheum designed the service for institutional clients such as asset management firms, hedge funds, banks and registered investment advisors. The company aims to expand to retail customers by 2024, offering comprehensive digital asset management under strict regulatory compliance.
Learn more: Ethereum (ETH) Price Prediction 2024/2025/2030
In 2023, Prometheus secure a special purpose broker’s license issued by the Financial Industry Regulatory Authority (FINRA) and the SEC. Despite this success, many industry leaders oppose classifying cryptocurrencies as securities, which contrasts with Prometheum’s approach.
Regulatory divergences add to this uncertainty. SEC Chairman Gary Gensler suggested that Ethereum could be a security. Merchandise Futures contracts The president of the trade commission, Rostin Behnam, however, sees a merchandise. In March, House Financial Services Committee Chairman Patrick McHenry and House Agriculture Committee Chairman Glenn Thompson urged the SEC to clarify ETH. classification.
Prometheum believes there is a clear legal path for crypto and demonstrates this through its ether custody service. As the SEC continues to enforce its regulations, Prometheum’s decision could set a precedent for other companies. If successful, this could validate the SEC’s regulatory framework and serve as a model for other digital asset companies seeking compliance.
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