Emily Walker
Prometheum, a company that has made headlines for its unique license to deal in crypto securities, is currently navigating a pivotal moment. The firm has aligned itself with the regulatory guidelines set forth by the US Securities and Exchange Commission (SEC), which has been led by an assertive Gary Gensler focused on crypto regulation.
As Gensler prepares to leave his position and pro-crypto Donald Trump gears up to assume office in 2025, the future regulatory landscape and potential reclassification of various tokens pose significant challenges for Prometheum.
Prometheum’s Future Looks Uncertain Following Gensler’s Departure
Prometheum has leveraged the SEC’s rules, which it considers advantageous, to obtain a Special Purpose Broker Dealer license, allowing it to function as a trading platform for digital securities—a specialized segment of the market it aims to serve.
This year, the company made headlines by testifying before a Democratic-majority US Congress regarding digital assets, a noteworthy achievement given its previous low profile in the wider crypto scene.
Nonetheless, according to Fortune, the expected changes with Gensler’s resignation and Trump’s presidency could create both opportunities and threats for Prometheum.
The Trump administration is likely to take a more permissive stance on cryptocurrencies, potentially changing how many tokens that Gensler views as “securities” are classified.
This transition could jeopardize Prometheum’s operational framework, which is based on the belief that numerous cryptocurrencies fall under the securities category, allowing the firm to establish the necessary legal foundation for trading these assets.
The political dynamics further complicate the situation. Prometheum has encountered inquiries and criticism from certain lawmakers, mainly Republicans, regarding alleged connections to China—an accusation the company has consistently rebuffed.
Co-CEO Seeks Growth Beyond Crypto Markets
When asked by Fortune about the company’s outlook, co-CEO Aaron Kaplan remained hopeful. He sees the potential for the Trump administration to instigate market changes, eventually leading to the creation of vast amounts of blockchain-based securities.
Kaplan pointed out that Prometheum is not just focused on cryptocurrencies; it also has the capability to venture into different asset categories, such as stocks, bonds, and exchange-traded funds, all enabled by blockchain technology.
Despite this optimism, there are doubts in the industry. Critics, including Matt Walsh from Castle Island Ventures, have raised concerns about Prometheum’s actual market activity, questioning whether its platform is facilitating genuine trade.
Kaplan acknowledged that the firm is still in the early phases of its journey and is actively engaging with financial institutions to expand its presence.
Featured image from DALL-E, chart from TradingView.com