US Congress Members Seek Transparency in Prometheum's SPBD Approval Process

According to Odaily, members of the United States Congress have requested non-public communications and records related to the application and approval process of Prometheum's Special Purpose Broker-Dealer (SPBD). The lawmakers have expressed dissatisfaction with the Securities and Exchange Commission's (SEC) response to the classification of Ethereum (ETH) and Prometheum's intention to custody ETH, which was issued on March 26. They have set a deadline of June 5 for a response. Prometheum received SPBD approval from the Financial Industry Regulatory Authority (FINRA) in May 2023 and launched its custody service for ETH as a security on May 17. The company's CEO, Aaron Kaplan, has sparked controversy in the crypto industry by advocating for the regulation of cryptocurrencies under existing securities laws. In June, the Blockchain Association submitted a Freedom of Information Act request, questioning the transparency of the approval process. This move by the association indicates a growing demand for clarity and transparency in the regulatory processes surrounding cryptocurrency and related services.