United States-based blockchain firm Prometheum has stirred the crypto market with its new move, challenging the current regulatory stance on digital assets.
The controversial blockchain company unveiled the long-anticipated Ethereum custody service on May 17.
The very same week that the SEC will deny an Ethereum spot ETP because of Ether’s “new” regulatory status. What convenient timing. What are the odds?
Controversial blockchain firm Prometheum launches long-awaited Ethereum custody | Fortune Crypto https://t.co/WR3YiRnzJN
— Bill Hughes : wchughes.eth 🦊 (@BillHughesDC) May 20, 2024
Notably, the company’s decision matched SEC Chair Gary Gensler’s outlook that the existing US regulatory framework is sufficient for monitoring the cryptocurrency world.
Prometheum’s long-anticipated ETH custody service
Prometheum launched the long-awaited Ethereum custody service, classifying the altcoin as a security under the regulator’s watch. Co-CEO Aaron Kaplan stated that their move shows existing laws can oversee crypto securities.
The launch marked a crucial milestone for the crypto market, considering the lingering regulatory challenges in the US.
More about Prometheum
Brother Benjamin and Aaron Kaplan founded Prometheum after acquiring a special broker-dealer certificate in 2023.
The unique license allowed the company to custody cryptocurrency securities, enabling Prometheum to operate in a sector many platforms abandon due to SEC’s “control.”
Nonetheless, Prometheum’s strategy, which incorporates running another trading platform under the SEC’s current laws, triggered controversy.
Despite criticism from industry leaders, the company proceeded with its approach, confirming Ether custody services launch in Feb 2024.
Prometheum Inc., the only SEC-registered crypto securities platform in the United States. The company announced that Ethereum (ETH) will be the first digital asset for which it will launch a custody service for its customers. pic.twitter.com/3E2NWNKk33
— VateCoin (@VateCoin) February 7, 2024
Prometheum promises a regulatory environment for future crypto trading and digital assets storage. The cryptocurrency community questioned the firm’s strategy considering ongoing battle on Ethereum’s status as a security.
The regulator’s stance on the altcoin might have notable effects on the market. Prometheum plans to fully launch the Ethereum services in early June before initiating the trading.
Court’s ruling boosts Ethereum investors’ confidence
The United States Department of Justice indicted two brothers for laundering over $25 million by manipulating the Ethereum network.
However, the court document boosted confidence among Ether enthusiasts and investors. They emphasized that Ethereum is a decentralized blockchain that operates without intermediaries.
The judgment countered the SEC’s stance on Ether as securities, as the watchdog issued Robinhood a Wells notice for law violation.
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