These Firms Say They Found an SEC-Friendly Crypto Path

Come In And Register? These Firms Say They Found an SEC-Friendly Crypto Path

As the industry fights with the U.S. regulator over “impossible” demands, Prometheum Capital and others win approvals to deal in crypto securities.

Last week, the Financial Industry Regulatory Authority (FINRA), an industry-funded oversight arm created by the SEC, announced that it approved its first broker-dealer with custody rights for digital assets securities – revealed Tuesday to be Prometheum Ember Capital LLC. And earlier this month, FINRA also gave OTC Markets Group a nod to join the handful of firms that can legally provide trading for crypto securities.

Meanwhile, Prometheum Capital has not only been approved as a “special purpose broker-dealer” that can take custody of customer’s crypto assets – effective May 17 – but also as an alternative trading system (ATS) for digital assets securities. The company’s platform will go live in the third quarter, Kaplan said.

Prometheum background at the SEC.

Looks like a Kaplan family business: Gusrae Kaplan

Marty brings to clients nearly four decades of experience litigating highly sophisticated matters before state and federal courts, administrative forums, regulatory bodies and in mediation and arbitration settings. Much of Marty’s practice involves investigations and complex enforcement proceedings before the United States Attorney’s Office, SEC, CFTC, various exchanges and FINRA, offices with which he has an established reputation and substantial and regular contact.

Nice. That will help.

Will be interesting to see how they manage existing tokens and whether calling them 'securities" will make them so.

Also, OTC Markets Group is where GBTC can be traded - sometimes. Remember that GBTC is a security; their issue is the regulatory refusal to convert it into an ETF.