Who the hell is Prometheum and what did it tell Congress about SEC compliance?

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Relatively under-the-radar crypto firm Prometheum has come under the spotlight after its co-founder gave recent testimony before a US House committee discussing clarity in crypto regulations.

On June 13, Prometheum co-founder and co-CEO Aaron Kaplan appeared before the United States House in a hearing to discuss regulatory clarity for the crypto industry.

Contrary to recent comments from crypto industry players such as Coinbase, Kaplans’ testimony appears to support the regulation of crypto under current securities laws, a view also shared by the Securities and Exchange. Commission (SEC).

Attention has also been drawn to Kaplans’ testimony on social media, including a widely shared Twitter thread on June 14 by Castle Island Ventures partner Matt Walsh, who shared what he claims are bizarre facts about the company and its co-founder.

The thread also prompted many people, including Cardano and Ethereum co-founder Charles Hoskinson, to ask who Kaplan and Prometheum are, and why they seem to be previously unknown.

Wall Street-based Prometheum was founded in 2017 by Aaron and Benjamin Kaplan, the company’s co-CEOs. The couple are also listed as attorneys with the financial services law firm Gusrae Kaplan.

The Company’s subsidiaries are distinguished by their SEC registrations and Financial Industry Regulatory Authority (FINRA) approvals.

In May, Prometheum subsidiary Ember Capital was the first firm to offer custody of digital assets as a qualified custodian after receiving FINRA approval to operate as a special purpose broker (SPBD) for assets. digital.

In October 2022, its Prometheum subsidiary Ember ATS launched its SEC-registered alternative trading system (ATS) offering trading, clearing, settlement and custody of digital assets.

What did Kaplan say?

In his prepared testimony, Kaplan argued that several frameworks provided by the SEC have clearly charted a compliant path for crypto in the United States.

He even provided a glowing review of the regulator, calling it the most competent financial market regulator in the world.

Kaplan asserted that crypto exchanges and custodians must be regulated by the SEC and criticized those that are not currently regulated as reckless and illegal platforms.

He went on to say that existing securities laws and regulations apply to cryptocurrencies and those advocating for new crypto-specific laws are simply unwilling to comply. He added that the new laws are not in the best interests of the investing public or the blockchain industry.

Related: Crypto Industry Destined To Be BTC-Centric Due To Regulators: Michael Saylor

However, some have criticized the crypto company, saying that Prometheum has little to show for its products despite its years of commercial and regulatory approval.

During the hearing, Representative Mike Flood asked Kaplan if Prometheum offered exchanges for Bitcoin (BTC) or Ether (ETH) which together account for nearly 65% ​​of the $1 trillion market capitalization according to CoinGecko.

Kaplan answered both questions by saying no.

“Bize” claims

Meanwhile, theories about the company are swirling on social media, with some alleging the company’s ties to the Chinese Communist Party, pointing to 2019 SEC filings by Prometheum stating that HashKey and Shanghai Wanxiang Blockchain are strategic partners and joint venturers.

Others pointed to the Prometheums team which includes former SEC and FINRA staffers.

Cointelegraph has contacted Prometheum to request a comment on some of these claims.

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