The Wall Street-based crypto company Prometheum is making headlines after its CEO and co-founder Aaron Kaplan appeared at a hearing before the United States House Committee advocating for the regulation of cryptocurrency within the existing securities laws, which aligns with the perspective of the Securities and Exchange Commission (SEC).
After Kaplan’s statements, doubts emerged within the community, leading to questions about Prometheum’s motivations for supporting the U.S. SEC and its perspectives. Notably, Adam Cochran, an investor at Cinneamhain Ventures renowned for his viral Twitter threads, took advantage of the buzz to publish an exposé on Prometheum.
1/23
— Adam Cochran (adamscochran.eth) (@adamscochran) June 15, 2023
Hoooooo baby this Prometheum story gets even better.
So they started in 2017 when they filled their Reg A+ and aimed to raise $50M.
But how did these random lawyers supposedly get approval from the SEC and FINRA? pic.twitter.com/6jLMUPldnY
Adam Cochran unraveled what could have led to the subsidiaries of Prometheum receiving registrations with the SEC and approvals from the Financial Industry Regulatory Authority (FINRA). Cochran proclaimed in his thread how several of the Prometheum team members have previously worked with the SEC/FINRA.
Cochran proceeded to write in his thread about the uncertainties related to Prometheum over all the previous years. The crypto entrepreneur explained how Prometheum’s fundraiser coordinated with Wanxiang, a purported Chinese Communist Party (CCP) affiliate, and how they raised $48 million without any product.
Following the hearing, Prometheum’s official Twitter account posted,
Prometheum’s stance is clear: There is a path forward for digital assets in the U.S. through the current regulatory frameworks set up by federal securities laws.
During his prepared testimony, Kaplan put forth an argument stating that the SEC has established comprehensive frameworks that offer a “clearly laid out” and compliant trajectory for cryptocurrency in the United States.
Kaplan expressed high praise for the SEC in his testimony, referring to it as the most capable financial markets regulatory agency in the world. Kaplan emphasized at the hearing that crypto exchanges and custodians should be regulated by the SEC while criticizing unregulated platforms as “reckless” and “unlawful.”
While Prometheum’s advocacy for regulation aligns with the perspective of the SEC, questions and doubts have been raised regarding the company’s affiliations, fundraising practices, and lack of a product despite substantial fundraising.
