The Blockchain Association, a United States crypto lobby group, recently submitted a Freedom of Information Act request to the U.S. Securities and Exchange Commission (SEC), seeking information on crypto company Prometheum. This came as the company’s CEO, Aaron Kaplan, testified at a House hearing and took a position in favor of regulating crypto under securities laws and the SEC, which contradicts the views of many in the industry.
There were suspicions about how Kaplan was able to provide testimony at a Congressional hearing on regulations and the sudden approval of Prometheum as a special purpose broker-dealer (SPBD) for digital assets. Furthermore, skepticism arose due to the backgrounds of some Prometheum team members, as several hold former positions with the SEC and Financial Industry Regulatory Authority (FINRA).
However, it’s worth noting that hiring former regulatory staffers is not uncommon in the crypto industry. For instance, Binance.US d-hired a former SEC enforcement co-director as a lawyer amidst a lawsuit.
Despite the differing opinions on regulations and the backgrounds of Prometheum’s team, the main conflict lies in the approach to regulating the crypto industry. The debate on whether to classify cryptocurrencies as securities or commodities fuels the argument on the extent of regulation and control that should be exercised by the SEC and other government agencies.
Overall, the discussion surrounding Prometheum and its stance on regulations is reflective of the broader ongoing debate in the crypto space: should cryptocurrencies and blockchain-based technologies be tightly regulated, or should they be allowed to operate more freely, perhaps under a self-regulatory framework? The answer to this question will shape the future of crypto, as it will directly influence the growth and innovation of the industry.
Source: Cointelegraph
