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Did the SEC Rule in Favor of Prometheum and Disadvantage Ripple and XRP? Report

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  • The Blockchain Association has filed a Freedom of Information Act request with the U.S. Securities and Exchange Commission (SEC), asking for specifics of its dealings with crypto exchange Prometheum.
  • The move comes in the backdrop of growing discussions about crypto regulations, as Prometheum’s co-CEO has publicly advocated for the SEC’s approach to crypto exchange regulation.

The Blockchain Association, a leading group of blockchain advocates, has taken an active step to demystify the SEC’s engagements with a relatively obscure crypto exchange, Prometheum. The Association announced on Thursday that it had lodged a Freedom of Information Act request with the SEC, aiming to pull back the curtain on the regulator’s dealings with Prometheum.

“Something fishy is going on here,”

claimed Jake Chervinsky, chief policy officer at the Blockchain Association, reflecting a sense of bewilderment surrounding Prometheum’s ATS (Alternative Trading System) and the assertions made by its co-CEO, Aaron Kaplan, during a congressional testimony.

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Prometheum has captured attention ever since Kaplan defended the SEC’s method of regulating crypto exchanges in his congressional testimony. Notably, Kaplan emphasized that it’s feasible for crypto exchanges to abide by U.S. law, a stance that contrasts with industry sentiments about a seemingly aggressive regulatory landscape in the U.S.

The crypto world has lately grappled with high-profile legal actions launched by the SEC against leading exchanges like Coinbase and Binance. While many contend that new legislation isn’t essential, Kaplan differed, pushing the viewpoint that the status quo suffices.

Despite Kaplan’s assertion, experts such as Rodrigo Seira, special counsel at Paradigm, have questioned the feasibility of Prometheum’s plans to list security tokens in a regulated manner. Seira pointed out that most cryptocurrencies, perceived as unregistered securities by the SEC, wouldn’t be tradable even on regulated exchanges without first getting registered with the SEC.

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Prometheum’s inability to list prominent cryptocurrencies like bitcoin or ether further fueled the debate. This raised doubts about Kaplan’s claim that no additional legislation is required.

In response to the unfolding scenario, Kaplan said,

“As for the Blockchain Association, we can’t provide comment on their motivations, but having passed the SEC and CFIUS reviews, Prometheum is confident our organization has been vetted by relevant regulatory bodies.”

It’s clear that the outcome of this request for information might illuminate important aspects of the complex and evolving relationship between regulatory bodies and crypto exchanges.

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Brian Johnson
Brian Johnson
A dedicated Bitcoin journalist passionate about uncovering the latest trends, developments, and innovations in the world of cryptocurrency, while delivering engaging and well-researched articles to inform and educate readers on the dynamic digital finance landscape.
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