SEC Investigation Demanded for Prometheum’s Sweetheart Deal With US SEC15. Juli 2023
• US Representative Ritchie Torres has requested an investigation into the SEC’s „haphazard and heavy-handed approach to digital assets“ and its “sweetheart deal” with crypto platform Prometheum.
• The Blockchain Association filed a request with the SEC seeking information about Prometheum, while six U.S. lawmakers called on the SEC to investigate Prometheum’s “ties to the Chinese Communist Party.”
• The problem seems to be co-founder of Prometheum Aaron Kaplan’s general support of the SEC’s regulatory strategy under current securities laws.
US Representative Requests Investigation into SEC
On July 13, U.S. Representative Ritchie Torres filed requests to the SEC’s Inspector General Deborah Jeffrey and the Government Accountability Office’s Comptroller General Gene Dodaro for an investigation into the Securities and Exchange Commission (SEC). In his letter, Torres calls for an examination of both the SEC’s failure to create “a workable process for registering” digital assets platforms and “the unusual backdoor deal” for crypto platform Prometheum.
Prometheum Sparks Controversy
Prometheum recently sparked controversy in the crypto industry after its co-founder, Aaron Kaplan, testified before Congress in June with general support of the SEC’s regulatory strategy under current securities laws. Immediately after his testimony, theories about Prometheum started swirling on Twitter emphasizing its possible ties to Chinese investors leading The Blockchain Association to file a request with the SEC seeking information about it. In July, six U.S. lawmakers similarly called on the SEC to investigate Prometheum’s “ties to the Chinese Communist Party.“
In his letters published by Torres on Twitter he writes: „The SEC refuses to bring even the barest amount of clarity to the application of securities law to digital assets … Its preferred means of communicating is neither rule nor guidance but enforcement.“ He goes on further questioning why a SPBD license was granted specifically for Promtheuem which he dubbs as „nothing more than a Potemkin platform, operating as a timely talking point for crypto critics rather than a true trading platform for crypto customers.“
„Sweetheart Deal“ With Crypto Platform?
Torres‘ demands are partially due do what many see as a „sweetheart deal“ between te SEEC and Prometheus which has led many criticis from within te cryptp space accusing it fo being nothing more thanan instrument employed by te SEEC in order tp pursue harsh regulation ogf cryptocurrency without providing any clarity or guicance surrounding such regulations..
Collect This Article As An NFT To Preserve History And Show Support For Independent Journalism
At th end ot his article Torres invites readers tp collect this article as an NFT n order o preserve this moment in history and show their support for independent journalism in te crypto space..