{"id":67460,"date":"2023-12-21T17:58:38","date_gmt":"2023-12-21T21:58:38","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=67460"},"modified":"2023-12-22T03:40:14","modified_gmt":"2023-12-22T07:40:14","slug":"finra-approves-prometheum-for-crypto-securities-services","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/finra-approves-prometheum-for-crypto-securities-services\/","title":{"rendered":"FINRA Approves Prometheum for Crypto Securities Services"},"content":{"rendered":"\n

Prometheum, a digital asset firm, has received approval from FINRA <\/a>to offer clearing and settlement services for crypto securities. The firm claims to be the only federally-registered platform for crypto trading and custody in the U.S.<\/p>\n\n\n\n

\"FINRA<\/figure>\n\n\n\n

Prometheum,\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> a digital asset firm that aims to bridge the gap between traditional and crypto finance, has obtained approval from the Financial Industry Regulatory Authority (FINRA) to offer clearing and settlement services for crypto securities. <\/p>\n\n\n\n

The firm announced today that it has received the green light from FINRA<\/use><\/svg><\/span><\/a> to operate as a clearing agency through its special purpose broker-dealer license, which it secured from the Securities and Exchange Commission (SEC) earlier this year.<\/p>\n\n\n\n

The approval from FINRA will enable Prometheum to provide custody, clearing, and settlement services for digital asset securities, such as tokens, stablecoins, and non-fungible tokens (NFTs). The firm claims to be the \u201conly viable, federally-registered access point for crypto trading and custody in the U.S.,\u201d according to its press release.<\/p>\n\n\n\n

Prometheum plans to launch its custodial services for institutional clients, such as asset managers and hedge funds, by the first quarter of 2024. The firm will also offer institutional and retail trading services shortly after, said Aaron Kaplan, co-chief executive officer of Prometheum, in an interview with The Block.<\/use><\/svg><\/span><\/a><\/p>\n\n\n\n

Kaplan said that the firm\u2019s mission is to facilitate the transition of crypto to federally regulated ecosystems and to provide a responsible way for the American public to participate in the digital asset space. He added that the firm\u2019s platform will offer a range of products and services, such as token issuance, trading, lending, staking, and yield farming.<\/p>\n\n\n\n

Prometheum\u2019s approval from FINRA comes amid increased scrutiny and pressure on the crypto industry from lawmakers and regulators. The firm itself has faced criticism and investigation from some industry groups and Republican lawmakers, who have questioned its relationship with the SEC and its regulatory advantage over other crypto players.<\/p>\n\n\n\n

In July, the Blockchain Association, a trade group representing crypto companies, sent a letter to the SEC requesting an investigation<\/use><\/svg><\/span><\/a> into Prometheum\u2019s special-purpose broker-dealer license, which it obtained in May. The group alleged that Prometheum had a \u201csweetheart deal\u201d<\/em> with the SEC in exchange for support of the SEC\u2019s policy goals or that Prometheum was leveraging personal connections with the SEC to gain an unfair market edge.<\/p>\n\n\n\n

In August, House Financial Services Committee Chair Patrick McHenry, R-N.C., also asked the SEC to provide information and documents related to Prometheum\u2019s license, as well as the SEC\u2019s views and actions on crypto regulation. McHenry said that the timing and circumstances of Prometheum\u2019s approval \u201craise serious questions\u201d<\/em> as Congress works on legislation to provide clarity and certainty for the crypto industry.<\/p>\n\n\n\n

Kaplan, however, dismissed the allegations and accusations against Prometheum and said that the firm\u2019s success resulted from working within the law and regulations rather than against them. He said that Prometheum has been transparent and cooperative with the SEC and FINRA and that the firm\u2019s platform will comply with all the relevant securities laws and rules.<\/p>\n\n\n\n

Prometheum\u2019s approval from FINRA is a notable development for the crypto industry and one that could have significant implications and consequences for the future of crypto finance. Whether Prometheum\u2019s platform will be a game-changer or a controversial player remains to be seen. <\/p>\n\n\n\n

However, Prometheum\u2019s platform could also face challenges and competition from other crypto players, who may offer more decentralized, permissionless, and cost-efficient solutions. The firm\u2019s platform could also encounter resistance and skepticism from some crypto enthusiasts, who may prefer to operate outside the traditional financial system and regulation. <\/p>\n","protected":false},"excerpt":{"rendered":"

Prometheum, a digital asset firm, has received approval from FINRA to offer clearing and settlement services for crypto securities. The firm claims to be the only federally-registered platform for crypto trading and custody in the U.S. Prometheum,  a digital asset firm that aims to bridge the gap between traditional and crypto finance, has obtained approval […]<\/p>\n","protected":false},"author":44,"featured_media":67462,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[10626,17663],"class_list":["post-67460","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-finra","tag-prometheum"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/12\/Prometheum.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/67460","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=67460"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/67460\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/67462"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=67460"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=67460"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=67460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}