tl;dr
Prometheum Inc. is aiming to become an SEC-compliant crypto firm by initiating a custody operation that will begin by handling customers' ETH. The company plans to expand to other tokens before launching its trading operations in the second quarter of 2024. As the only U.S.-registered crypto securit...
Prometheum Inc. is aiming to become an SEC-compliant crypto firm by initiating a custody operation that will begin by handling customers' ETH. The company plans to expand to other tokens before launching its trading operations in the second quarter of 2024.
Prometheum, as the only U.S.-registered crypto securities platform, represents a high-stakes test case in U.S. crypto. It is navigating the complexities of SEC compliance and the distinction between crypto securities and commodities and may be influenced by ongoing court cases that will determine how crypto securities are defined.
While the company's executives say that the firm will follow with a number of other tokens before launching its trading operations, targeting the second quarter of 2024 to open its doors, the choice to initially handle ETH as its opening asset comes with its own complications. The SEC is more coy about whether ETH is among the digital tokens that should be considered securities that fall under its jurisdiction, while the Commodity Futures Trading Commission hasn't been so shy about declaring that ETH is definitely a commodity.
With immense interest in its service as a so-called "qualified custodian," Prometheum is positioning itself to service asset managers, hedge funds, investment advisers, banks, and other financial institutions, potentially benefiting from the trend toward asset tokenization. However, it faces uncertainty regarding ongoing court cases that promise answers on how crypto securities will be defined, which could affect the universe of securities it can host on its platform.
If you want to stay updated on the latest developments in the field of crypto securities and the implications for the future of the industry, keep an eye on Prometheum's journey and the outcomes of the court cases in progress.
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