The Financial Industry Regulatory Authority permitted Prometheum Ember Capital to provide clearing and settlement services, a development that is expected to cause tremors in the cryptocurrency space.
A lesser-known provider of digital assets, Prometheum was granted permission by FINRA to enable digital asset securities clearing and settlement services via its special purpose broker-dealer license, which it acquired from the Securities and Exchange Commission this past year.Â
According to Aaron Kaplan, co-chief executive officer of Prometheum, “We really feel that this transition of crypto to federally-regulated ecosystems is a major step forward for the industry as we still need a responsible way for the American public to participate in the digital asset space,” while speaking with The Block.
By the first quarter of the upcoming year, Prometheum hopes to start providing custodial services to institutional clients, such as asset management companies and hedge funds. Soon after, institutional and retail trading will begin, according to Kaplan.
Prometheum’s actions coincide with the SEC’s repeated warnings to cryptocurrency exchanges that they must register with the organization.
It has accused Coinbase, Binance, and Kraken of acting as an unregistered exchange, broker, dealer, and clearinghouse during the previous year. Crypto companies, meanwhile, have maintained that registering with the government is not feasible.
Also Read: Blockchain Association Doubts SEC Compliance Of Prometheum
Prometheum has come under fire from the sector as a whole, with investigations from Republican politicians and the Blockchain Association. According to the Blockchain Association, the company and the SEC struck a “sweetheart deal” in July.
