Prometheum, a cryptocurrency firm headquartered in New York, is set to unveil its custody services for Ethereum on Wednesday, according to sources cited by Fortune. This strategic move is speculated to be part of the company’s broader agenda aimed at influencing regulators to classify Ethereum (ETH) as a security.
While the U.S. Securities and Exchange Commission (SEC) has refrained from definitively categorizing Ethereum’s legal status, it has declared numerous other cryptocurrencies as securities. Prometheum’s forthcoming initiative, which it asserts aligns with existing regulatory frameworks, may compel the SEC to take a stance on Ethereum’s classification.
Should the SEC ultimately classify ETH as a security, Prometheum stands to gain a significant advantage upon the launch of its planned trading platform in the next quarter. This development contrasts with the prevailing sentiment in the industry, where many argue that cryptocurrencies cannot thrive without new regulatory legislation.
Founded by brothers Aaron and Benjamin Kaplan, Prometheum secured regulatory approval in 2021 to operate an alternative trading platform akin to traditional stock markets. This platform enables users to trade various securities. The company garnered attention in mid-2023 when it announced receiving approval from the Financial Industry Regulatory Authority (FINRA) to function as a special purpose broker for digital asset securities, marking a notable milestone in the cryptocurrency industry.
The Kaplan brothers have expressed support for the SEC’s perspective that the majority of cryptocurrencies should be classified as securities, aligning with their firm’s regulatory approach and strategic initiatives.
