Prometheum, a agency that has garnered consideration for its first-of-its-kind license to function in crypto-based securities, finds itself at a crossroads. The agency has positioned itself throughout the regulatory framework established by the US Securities and Trade Fee (SEC) below its chair, which has taken a tricky stance on crypto classifications.
Nevertheless, with management adjustments on the horizon, as SEC Chair Gary Gensler introduced his departure and pro-crypto Donald Trump prepares to take workplace in 2025, the regulatory atmosphere and the potential shift within the classification of those tokens might problem the agency’s operations.
Prometheum Faces Uncertainty As SEC’s Gensler Resigns
Prometheum has touted the SEC’s present guidelines as “useful,” leveraging them to safe a Particular Goal Dealer Seller license. This standing permits the agency to function as a platform for buying and selling digital securities, a distinct segment market inside which it has marketed itself.
In 2023, the corporate notably testified earlier than the US Congress – with a Democratic majority – on digital belongings, marking a major milestone regardless of its relative anonymity throughout the broader crypto group.
Nevertheless, Fortune reviews that the anticipated resignation of Gensler, coupled with the election of Trump, presents a double-edged sword for Prometheum.
The incoming Trump administration is anticipated to undertake a extra lenient strategy towards cryptocurrencies, doubtlessly redefining the classification of many tokens that Gensler has deemed “securities.”
The report alleges that this shift might undermine Prometheum’s enterprise mannequin. Its mannequin hinges on the premise that many cryptocurrencies are labeled as securities, permitting it to supply the mandatory authorized infrastructure for buying and selling these belongings.
The political panorama provides additional complexity. Prometheum has confronted scrutiny and criticism from some lawmakers, notably Republicans, who’ve questioned its ties to China—an allegation the agency has constantly denied.
Co-CEO Eyes Growth Past Crypto
In response to Fortune’s inquiries about Prometheum’s prospects, Aaron Kaplan, the corporate’s co-CEO, expressed optimism. He believes that the Trump administration will catalyze change out there, resulting in the issuance of trillions of securities primarily based on blockchain expertise.
Kaplan emphasised that Prometheum will not be restricted to crypto and has the potential to develop into numerous asset lessons, together with equities, debt, and exchange-traded funds, all facilitated by blockchain expertise.
Regardless of the optimism, skepticism stays. Business critics similar to Matt Walsh of Fortress Island Ventures and a political commentator have questioned Prometheum’s impression, citing a scarcity of proof that its platform is getting used for “real-world buying and selling.”
But, Kaplan acknowledged the agency continues to be within the “very early levels” of its improvement, asserting that Prometheum is engaged in ongoing discussions with monetary establishments to broaden its attain.
Featured picture from DALL-E, chart from TradingView.com
