Prometheum To Face Setback Post SEC Chair Gary Gensler’s Exit: Fortune

U.S.-based crypto firm Prometheum had earlier leveraged the U.S. SEC Chair Gary Gensler’s tightened stance on cryptocurrencies. However, with Donald Trump’s reelection as the 47th president and Gensler announcing his step down, recent sentiments surrounding the firm’s future took a paradigm shift. With the rising speculations of a pro-crypto SEC Chair ahead, potential re-enforcements in crypto securities laws looming over the horizon have clouded the crypto firm’s future in an enigma.

Crypto Firm Prometheum’s Future Appears Less Certain: Report

Despite the broader cryptocurrency industry mirroring a gloomy response to the SEC’s scrutinized stance, Prometheum always affirmed that the current crypto rules were just fine. However, with pro-crypto Trump’s win and Gary Gensler announcing exit, wider sentiments over a loosened grip on digital asset laws have emerged nationwide.

Primarily, there have been soaring speculations that cryptocurrencies will not be considered securities under Trump’s presidency and a pro-crypto SEC Chair. This is the polar opposite of Gary Gensler’s approach, which flags every cryptocurrency other than Bitcoin (BTC) as a security.

Notably, Prometheum’s business model stages itself largely as a platform where crypto tokens are securities, with the firm previously cementing its infrastructure in line with Gary’s & SEC’s grip on digital assets. However, with the Chair’s exit and a pro-crypto shift nationwide, the future scenario for the U.S.-based digital asset firm remains uncertain.

CEO Aaron Kaplan On Post-Gensler Era

Speaking with Fortune, CEO Aaron Kaplan conveyed that Prometheum has the opportunity to move beyond crypto and use its ‘Special Purpose Broker Dealer’ license to offer a range of services. These services include “equities, debt instruments, structured products, options, ETFs, money market funds.”

Further, he added, “We expect that President Trump’s administration will oversee this market transformation as trillions of securities are issued on a blockchain, ushering in the benefits that blockchain technology has long promised market participants.” Meanwhile, other industry prominencies appear to be not so optimistic about the firm’s future.

Matt Walsh, co-founder of the influential crypto venture capital firm Castle Island, told Fortune that he had seen negligible evidence that shows individuals using the platform for real-world trading. Simultaneously, Kaplan stated that the firm is still in “the very early stages” and that it is “actively engaged in discussions with financial institutions,” sparking uncertain speculations over the firm’s future.

Meanwhile, GOP Representative John Rose recently criticized the SEC and FINRA for their silence on Prometheum’s Ethereum custody services. Lawmakers pointed out that the SEC acknowledged that Ethereum is not a security, but it still allows the broker-dealer to consider ETH security, underscoring the complexities of crypto laws.