Yesterday 23 Republican representatives from the House Financial Services Committee shared a letter sent to the SEC querying the grant of the first and only special purpose broker dealer license to Prometheum Ember Capital in May. It requested all communications regarding Prometheum by August 22.
Prometheum is structured in a similar way to traditional finance (TradFi) infrastructures, with separation between its exchange (a regulated ATS) and the broker dealer that’s responsible for custody. The founders are securities lawyers and their father runs a specialist securities law firm. At the time of the license grant we also highlighted that it had received investment from Hong Kong’s HashKey and China’s Wanxiang Blockchain.
The lawmakers want to know why Prometheum, which has not yet traded, was granted approval by FINRA while others have not. They raise three issues:
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