After Nearly a Decade, Gary Gensler's Poster Child for Crypto Compliance Executes Its First Trade
Prometheum, after nearly a decade and raising almost $100 million, has launched its first crypto trades, offering Ethereum trading with plans to add more assets soon. The company aims to integrate digital assets and traditional investments for broker-dealers and Registered Investment Advisors, aligning with existing financial structures. Unlike competitors focused on Bitcoin ETFs, Prometheum treats digital assets like Ethereum as securities, building its platform under strict SEC and FINRA compliance. In 2023, it became the first to obtain a special purpose broker-dealer license to custody digital asset securities. This approach initially drew skepticism and industry ridicule, especially after CEO Aaron Kaplan publicly supported the SEC’s regulatory approach, contrasting with other crypto leaders fighting in court. However, a recent regulatory shift has lessened the significance of Prometheum's compliance-focused strategy. The SEC’s specialized framework is now optional, allowing traditional broker-dealers to custody digital asset securities under standard rules, weakening Prometheum’s exclusive advantage. Despite this, Kaplan argues the company is positioned to mainstream crypto investing by merging it with traditional financial markets.
