The SEC may be under investigation due to a suspicious transaction
Date: 2023-07-16 Author: Karina Ziganova Categories: BLOCKCHAIN, BUSINESS
U.S. Congressman Richie Torres is asking for an investigation into the U.S. Securities and Exchange Commission (SEC) over a possible deal with the Prometheum platform.
The politician sent inquiries to the Inspector General of the US Securities and Exchange Commission (SEC) Deborah Jeffrey and the Comptroller General of the Government Accountability Chamber Gene Dodaro. The reason for the proceedings was the decision of the SEC to grant a license of a special brokerage dealer (SPBD) to the digital asset trading platform Prometheum. It was established in 2017 by two U.S. financial attorneys.
Torres questions the legitimacy of Prometheum, describing it as a "Potemkin platform" that doesn't actually provide any trading services. He argues that the SEC has failed to form an effective registration process for digital asset trading platforms, and demands an investigation into the alleged transaction involving Prometheum.
Suspicious platform
In June of this year, Prometheum co-founder Aaron Kaplan testified before Congress. He was suspected of having links with Chinese investors. In addition, the Blockchain Association filed a request with the SEC in June, requesting information about Prometheum.
As a result, six U.S. lawmakers have called on the SEC to investigate the platform's alleged ties to the Chinese Communist Party.
Gensler's Removal from Crypto Regulation
Earlier, the US Blockchain Association stated that SEC Chairman Gary Gensler should not be allowed to regulate the crypto industry. The association believes the Commission failed under Gensler's leadership by refusing to create a clear set of rules that "will allow investors, entrepreneurs, and the public to understand whether securities laws apply to their products or services."
Representatives of the Association believe that Gensler has demonstrated a "frank bias" towards the crypto industry and is not able to make modern decisions on important issues for the digital asset industry.
