The crypto industry has long been frustrated by the Securities and Exchange Commission’s heavy-handed stance and refusal to develop rules that take blockchain’s unique technology into account. However, one company argued that the SEC’s current crypto rules are just fine. This attitude paid off, with the company Promethium winning the first license for crypto-based securities and testifying before Congress about digital assets in 2023, despite being virtually unknown in the crypto world. I won an honorable place to do so. .
But now there is a problem with Promethium. The company, which appeared to have the upper hand in its apparent internal relationship with regulators, has now been given the upper hand in its apparent internal relationship with regulators, as SEC Chairman Gary Gensler announced he would resign early next year following the election of cryptocurrency advocate Donald Trump. must compete in the world. The rules of the cryptocurrency game are changing dramatically.
Most notably, many cryptocurrencies will do not have In President Trump’s case, it is considered a security. This differs from the current regulatory environment, where the SEC’s Gensler has suggested that tokens other than Bitcoin are securities and has filed lawsuits to force companies to delist popular tokens such as Solana and XRP. However, since the election, companies such as Coinbase and Robinhood have relisted these assets in anticipation of the next SEC chairman not treating these tokens as securities.
This is a potential problem for Prometheum, as its business model is primarily based on selling itself as a platform for trading crypto tokens. teeth Acquire securities and the legal infrastructure to support them.
It’s unclear where this will go with Promethium, which has garnered widespread interest. ridicule Gensler’s role as an industry model has come under fire from cryptocurrency circles. Meanwhile, the company faces an incoming Congress dominated by hostile Republicans, including figures like Sen. John Rhodes (R-Tenn.), who has criticized its ties to China. Promethium strongly denies the claims.
In response to questions from luck Regarding Promethium’s future in a post-Gensler world, the company provided a written response from Aaron Kaplan, who shares the CEO role with his brother.
Kaplan said Promethium has the opportunity to go beyond cryptocurrencies and use its first license (known as a special purpose broker-dealer) to offer a wide range of assets including “equities, bonds, structured products and options.” It is said that there is. , ETFs, money market funds, etc., in the form of securities on the blockchain.
“We expect President Trump’s administration to oversee this market transformation as trillions of securities are issued on blockchain and blockchain technology delivers the benefits long promised to market participants,” Kaplan said. I wrote it.
Others are less sure. said Matt Walsh, co-founder of influential crypto venture capital firm Castle Island and an outspoken critic of Promethium. luck He has seen little evidence that anyone is using the company’s platform for real-world trading. And while financial giants like Goldman Sachs and BlackRock, along with crypto-native companies like Superstate, are dabbling in tokenized traditional assets, this is so far It remains a very niche area of finance.
In response to a question about whether Promethium could point to real-world customers or other evidence that it is gaining market traction, Kaplan said the company is still in the “very early stages” and that “financial institutions… We are actively engaged in discussions with the government.” ”
