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Prometheum, the archetypal U.S. peculiar intent broker-dealer authorized to custody, clear, and settee integer plus securities, disclosed that it is present providing custodial services for the cryptocurrency ethereum. This announcement arrives amidst a play wherever the salient crypto asset, ethereum, remains without a definitive classification arsenic a information by the U.S. Securities and Exchange Commission (SEC).
Prometheum Reveals Ethereum Custody Plans
On Wednesday, Prometheum revealed its plans to commencement custodial services for ethereum (ETH) and has initiated the signup process for plus absorption firms, hedge funds, registered concern advisors (RIAs), banks, and assorted fiscal entities successful mentation for the forthcoming motorboat of custodial services.
Last year, Prometheum captured wide attraction erstwhile its co-CEO, Aaron Kaplan, delivered testimony to the U.S. House of Representatives Committee connected Financial Services (FSC) connected June 13, 2023. Following the testimony, U.S. Senator Thomas Tuberville (R-AL) issued an unfastened missive to U.S. Attorney General Merrick Garland and SEC Chairman Gary Gensler, raising alarms implicit the imaginable of “false testimony.”
In addition, Democratic Representative Ritchie Torres from New York dispatched letters to U.S. Comptroller General Gene Dodaro and SEC Inspector General Deborah Jeffries concerning Prometheum’s licensing. This bid of events prompted the FSC, nether the enactment of Chairman Patrick McHenry (R-NC), to initiate a probe into Prometheum.
In January, the Financial Industry Regulatory Authority (FINRA) authorized Prometheum to wide integer assets. With this support successful spot for launching ether custodial services, Prometheum further announced its volition to supply trading, clearing, and colony services to some retail investors and organization clients this year.
“Prometheum Capital’s custodial services, starting with ETH, are tailored to conscionable the stringent regulatory and compliance standards promulgated by the national information laws,” Kaplan said successful a connection connected Wednesday.
Prometheum’s determination to custody ether is noteworthy, fixed that ethereum (ETH) has yet to beryllium explicitly classified arsenic a information by the SEC, whereas bitcoin (BTC) is broadly acknowledged arsenic a commodity.
While the SEC and Chairman Gensler person remained silent connected the matter, Chairman Rostin Behnam of the U.S. Commodity Futures Trading Commission (CFTC) has informed Congress of his presumption that ether qualifies arsenic a commodity. Furthermore, Prometheum’s announcement arrives amid the SEC’s ongoing deliberations connected whether to authorisation a spot ETH exchange-traded money (ETF).
What bash you deliberation astir Prometheum offering ethereum custody services successful 2024? Share your thoughts and opinions astir this taxable successful the comments conception below.
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