First cryptocurrency exchange to receive SEC license to test its operations revealed

Thanks to the hearings in July 2023 and improper connections with the SEC, the Prometheum exchange suddenly attracted a lot of attention from the crypto community and was considered the SEC’s “darling” exchange.

Recently, in FINRA documents Regarding license expansion, the U.S. Securities and Exchange Commission (SEC) has just granted a license to test the operational capabilities of Prometheum Inc. under the supervision of the agency.

As a result, Prometheum becomes the only cryptocurrency brokerage licensed under SEC regulations. This is a big step forward for the platform, especially during a sensitive time when the SEC maintains many strict regulations on the cryptocurrency space.

Currently, Prometheum is not open for business. The hall is expected to accept custody of institutional client assets over the next four months. Listed tokens will be announced soon.

In addition to custody, Prometheum also revealed that it is considering tokenizing traditional securities.

It is understood that Prometheum is a relatively unknown cryptocurrency exchange that was established in 2017, but suddenly became famous in the community after a U.S. House of Representatives hearing in mid-July 2023.

Specifically, during the hearing, founder Aaron Kaplan stated that Prometheum is a fully licensed cryptocurrency trading platform that fully supports SEC Chairman Gary Gensler’s recent “enforcement” measures against the entire cryptocurrency industry.

In addition, according to exchange information, Prometheum has successfully raised US$50 million (the identity of the investor has not been disclosed). However, the company has not released any products since its establishment and only submitted an application to issue tokens. Notably, the firm’s staff consists entirely of former SEC and FINRA employees.

It was the exchange’s questionable record and support for SEC actions that cast doubt on Prometheum’s identity and role in the crypto community.Many people think this is SEC’s “darling” trading platform.

Faced with this problem, the Blockchain Association submitted a Freedom of Information Act request to the SEC, seeking records related to Prometheum. Some U.S. lawmakers have also asked the Department of Justice and the U.S. Securities and Exchange Commission to investigate Prometheum’s alleged ties to Chinese companies.

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