Summary
Prometheum, a digital asset platform, is testing the boundaries of the Securities and Exchange Commission (SEC) regulations by offering custody and trading services for Ethereum as a security. The company hopes that by legally offering Ethereum as a security, it can establish itself as the only platform for trading the asset. However, it remains unclear whether the SEC will classify Ethereum as a security or not. The SEC has been cautious in providing clear guidelines for cryptocurrencies in the past, so it is unlikely they will make a definitive statement on Ethereum. Prometheum has the authority to designate assets as securities under the SEC’s special-purpose broker-dealer license.
Key Points
1. The registration of Prometheum with the SEC raises uncertainty about how the agency views ETH (Ethereum) as a security.
2. Prometheum holds licenses for both custody and trading of digital assets, allowing it to legally trade Ethereum as a security.
3. It is unlikely that the SEC will step in to designate Ethereum as a security, as the agency has been hesitant to provide clear guidance on cryptocurrencies.