The association sent a letter to US SEC Inspector General Deborah Jeffrey, demanding clarification under what circumstances Prometheum received a special broker-dealer license in May 2023. Human rights activists believe that this is quite difficult to do, given the uncertainty regarding US securities laws and their application to crypto companies.
The Blockchain Association also demanded an explanation of how Prometheum founder Aaron Kaplan was able to address the U.S. House Financial Services Committee in June. Lawyers explained that back in April 2021, Prometheum required the SEC to create clear regulatory rules for regulating the industry, and now the company says that there is no need for legislation for cryptocurrencies, since “there is a clear path for registering digital assets.”
“We fear that the SEC has struck a deal with Prometheum in exchange for supporting the regulator’s political goals, or that Prometheum is using personal connections with the SEC to gain an unfair advantage in the market,” the Blockchain Association said in a letter.
The non-profit association is concerned that SEC Chairman Gary Gensler may use the Prometheum license as a means to prevent Congress from drafting legislation for cryptocurrency companies. The official has repeatedly reiterated that the rules for digital assets are pretty clear – they should be governed by securities laws.
In June, the Blockchain Association released a report on Gensler’s activities to strip him of his authority to make decisions related to cryptoassets. Earlier, the head of the Blockchain Association, Kristin Smith, said that it was the US Congress that should create the rules to regulate the industry.
Source: Bits
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