On July 13, U.S. Representative Ritchie Torres submitted requests for investigations into the United States Securities and Exchange Commission (SEC) regarding its handling of digital assets and its alleged “sweetheart deal” with crypto platform Prometheum. Torres addressed these letters to the SEC’s Inspector General and the Comptroller General of the Government Accountability Office.
Torres criticized the SEC for its lack of clarity in applying securities laws to digital assets, noting that the agencies preferred method of communication appears to be enforcement rather than providing clear rules or guidance. He specifically highlighted the SEC’s decision in May to grant a special broker purpose dealer (SPBD) license to Prometheum, a digital assets platform founded by two U.S. financial attorneys.
According to Torres, Prometheum may be more of a symbolic platform used to criticize cryptocurrencies rather than a genuine trading platform for customers. He called for an investigation into the SEC’s failure to establish a workable process for registering digital assets platforms and the alleged backdoor deal with Prometheum.
Prometheum has faced scrutiny within the crypto industry, and Torres’ call for an investigation is not the first. The company gained attention after its co-founder, Aaron Kaplan, testified before Congress in June, expressing support for the SEC’s regulatory strategy under current securities laws.
Following the hearing, rumors circulated on Twitter suggesting possible ties between Prometheum and Chinese investors. In June, the Blockchain Association filed a request with the SEC seeking information about the company, and in July, six U.S. lawmakers urged the SEC to investigate Prometheum’s alleged connections to the Chinese Communist Party.
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