Crypto Analyzer

Controversial blockchain firm Prometheum launches long-awaited Ethereum custody

# Prometheum Launches Ethereum Custody Services Under SEC Supervision

The digital assets platform Prometheum has made headlines with the launch of its long-awaited custody services for Ethereum under the supervision of the Securities and Exchange Commission. This move is significant as it classifies Ethereum as a security, aligning with the regulatory stance advocated by SEC Chair Gary Gensler.

Prometheum, led by co-CEOs Aaron and Benjamin Kaplan, has taken a contrarian view within the crypto industry, asserting that there is already a clear legal path to trade cryptocurrencies under existing regulations. The company’s innovative approach includes obtaining a broker-dealer license that permits the custody of digital asset securities, paving the way for compliant trading activities.

While Prometheum’s strategy has faced criticism from industry leaders who doubted its feasibility, the company has persevered and recently announced the launch of Ethereum custody services. By ensuring that both the custodian and trading systems operate under separate entities with regulatory approvals from the SEC and FINRA, Prometheum aims to provide a compliant trading environment for digital asset securities.

The Ethereum custody launch marks a crucial step for Prometheum’s vision, signaling the company’s commitment to navigating the regulatory landscape while offering innovative services to customers. Despite delays in the launch timeline, Prometheum remains focused on its goal of providing a platform for trading Ethereum under SEC oversight.

As the crypto industry continues to grapple with regulatory uncertainties, Prometheum’s approach challenges conventional norms and sets a precedent for other firms looking to operate within existing legal frameworks. The successful rollout of Ethereum custody services represents a milestone for Prometheum and underscores the company’s dedication to compliance and innovation in the evolving crypto landscape.