Prometheum to Offer Ether Custody Services; SEC's Response Awaited
Summary:
Prometheum, a US-approved crypto firm, is set to offer institutional custody services for Ether (ETH), treating it as a security on its platform. This decision follows the company's approval from the US Financial Industry Regulatory Authority in May 2023. However, the SEC's reaction to this treatment of Ether is yet unclear. The SEC has also postponed its decision on the approval of spot ETH exchange-traded funds after approving those for Bitcoin (BTC).
Prometheum, a crypto firm approved by US financial regulators as a special purpose broker-dealer (SPBD) for digital asset securities, is set to provide institutional custody services for Ether (ETH). On February 7, Prometheum made a statement on X that it would handle Ether as a security for its platform's custodial services. Having gained the nod from the US Financial Industry Regulatory Authority in May 2023, the company appears to meet many of the US Securities and Exchange Commission (SEC) guidelines about crypto asset securities.
They expressed their excitement via a tweet about introducing ETH as the first digital asset security for institutional custody on their platform, urging institutions to prepare for the anticipated custodial services.
The company's website claims that Prometheum ATS facilitates the trade of certain digital asset securities that are currently only found on crypto exchanges. It offers investors the chance to diversify their portfolios by investing in the 'crypto asset' class, while enjoying the protections granted by securities laws.
However, it is still unclear how the SEC will react to Prometheum treating Ether as a security for its investors. In an April 2023 hearing, SEC chair Gary Gensler declined to comment on whether ETH could be classified as a security. Queries sent to Prometheum CEO Aaron Kaplan went unanswered at the time of reporting.
Related: Jack Dorsey stirred controversy by suggesting ETH is a security.
The SEC delayed ruling on whether to approve or reject the listing and trading of spot ETH exchange-traded funds proposed by several asset managers. This comes after the regulatory body gave the green light to spot Bitcoin (BTC) ETFs on January 10. The final deadline to approve or deny VanEck's spot ETH offering is set for May 23, according to some experts.
Magazine: SEC postpones Ether ETFs decision, Binance settlement green-lit and more court setbacks for SBF: Hodler’s Digest, Dec. 17-23.
Published At
2/8/2024 12:50:31 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.