SEC Asked to Review Compliance of Digital Asset Platform Prometheum with Regulation ATS

IconCryptoNewsTerminal Staff22 May, 2024

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SEC Asked to Review Compliance of Digital Asset Platform Prometheum with Regulation ATS

Patrick McHenry, the House Financial Services Committee Chairman, and other Republicans have asked the Securities and Exchange Commission (SEC) to provide a report reviewing the extent to which digital asset platform Prometheum complies with Regulation ATS, according to a report by Decrypt. Regulation ATS was created to help bring transparency to alternative trading systems (ATSs), which are platforms that facilitate the trading of securities outside of traditional exchanges. As reported earlier, the Financial Industry Regulatory Authority (FINRA) allowed Prometheum to offer crypto clearing and settlement services under a special purpose broker-dealer (SPBD) license.  "Prometheum's recent announcement that it would soon launch an Ethereum (ETH) custody service has reportedly raised eyebrows among market participants and policymakers," Decrypt noted, adding that the lawmakers are seeking SEC information to better understand Prometheum and the security status of ETH.

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