Prometheum claims Ether is a ‘digital asset security’ with the launch of a security service.
Promethium, one of the few crypto companies to receive approval from US financial regulators as a special purpose broker-dealer (SPBD) for digital asset securities, has announced that it will offer institutional custody services for Ether (ETH).
In a February 7th post on X, Prometium suggested that Ether would be considered a security for security purposes on the platform. The company received a license from the US Financial Industry Regulatory Authority in May 2023, apparently meeting most of the guidelines set by the US Securities and Exchange Commission (SEC) regarding crypto asset securities.
Prometheum Capital is excited to announce ETH as the first #digitalsecurity on the platform for institutional safekeeping. Institutions can register now to prepare for our continued protection services. #DigitalSecurities #DigitalSecurities
— Prometheum (@PrometheumInc) February 7, 2024
“Prometheum ATS currently supports the trading of certain digital assets that are only traded on crypto exchanges,” the company's website states. “Diversify your portfolio mix by investing in the ‘crypto asset' segment with investor protections from guardrails and securities laws.”
It's unclear how the SEC will react when Prometheum offers Ether as a security to investors. SEC Chairman Gary Gensler brushed aside questions at an April 2023 hearing about whether ETH qualifies as a security. Cointelegraph reached out to Promethium CEO Aaron Kaplan but did not receive a response at the time of publication.
RELATED: Jack Dorsey files court case claiming ETH is a security
Following the SEC's approval of spot Bitcoin (BTC) ETFs on January 10, it has prompted a decision from several asset managers to list and trade ETH or deny trading positions. Some experts expect the commission to reach a decision by May 23 – the deadline for the ETH supply from VanEck.
Magazine: SEC Delays Ether ETFs, Binance Settlement Approved and Another Court Loss for SBF: Hodler's Digest, December 17-23
