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 inside the regulatory framework established by the US Securities and Alternate Fee (SEC) beneath its chair, which has taken a troublesome stance on crypto classifications.
Nevertheless, with management modifications on the horizon, as SEC Chair Gary Gensler introduced his departure and pro-crypto Donald Trump prepares to take workplace in 2025, the regulatory setting 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 current guidelines as “helpful,” leveraging them to safe a Particular Objective Dealer Supplier 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 inside 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 predicted to undertake a extra lenient strategy towards cryptocurrencies, probably 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 categorized as securities, permitting it to supply the required authorized infrastructure for buying and selling these belongings.
The political panorama provides additional complexity. Prometheum has confronted scrutiny and criticism from some lawmakers, significantly 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 based mostly on blockchain know-how.
Kaplan emphasised that Prometheum isn’t restricted to crypto and has the potential to increase into numerous asset lessons, together with equities, debt, and exchange-traded funds, all facilitated by blockchain know-how.
Regardless of the optimism, skepticism stays. Trade critics equivalent to Matt Walsh of Fort Island Ventures and a political commentator have questioned Prometheum’s affect, citing an absence 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 growth, asserting that Prometheum is engaged in ongoing discussions with monetary establishments to broaden its attain.
Featured picture from DALL-E, chart from TradingView.com
