Benzinga - Cryptocurrency firm Prometheum, on Wednesday, gained the attention of the crypto community after its co-founder and co-CEO, Aaron Kaplan, gave testimony before the United States House Committee regarding regulatory clarity for the crypto industry.
What Happened: In contrast to the industry commentary from firms such as Coinbase, Kraken, Kaplan's testimony appears to be supportive of the regulation of cryptocurrency under current securities laws.
For those that didn't stick around until the end of the @FinancialCmte hearing today, this exchange between @USRepMikeFlood and @PrometheumInc CEO Aaron Kaplan is an absolute must-watch.Flood explicitly lays out why Prometheum's claims that their SPBD approval is evidence of a… pic.twitter.com/yCDDKHiLea
— Alexander Grieve (@AlexanderGrieve) June 13, 2023
Kaplan argued that existing securities laws and regulations apply to cryptocurrencies and those who argue for new crypto-specific laws are "simply not willing to comply." He even called the SEC "the most capable financial markets regulatory agency in the world."
However, when Kaplan was asked by a member of the committee if the company offered trading for Bitcoin (CRYPTO: BTC) or Ethereum (CRYPTO: ETH). Kaplan responded by saying that they did not offer trading for either currency.
‘Bizarre' Theories: Castle Island Ventures partner Matt Walsh along with Adam Cochran shared "bizarre" facts about the company and its co-founder.
This Prometheum storyline has got to be the strangest thing I have seen in awhile in this industry. Has anyone actually looked into this? Beyond bizarre…— Matt Walsh (@MattWalshInBos) June 14, 2023
On Twitter, alleged theories about Prometheum’s links to the Chinese Communist Party have been circulating. Additionally, some have drawn attention to Prometheum’s team, composed of former staffers from the SEC.
2/23Look no further than their team, including Rosemarie Fanelli, who worked for the NYSE and then FINRA pic.twitter.com/PmMfrGXj4G
— Adam Cochran (adamscochran.eth) (@adamscochran) June 15, 2023
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Why It Matters: This has led many in the crypto community, including Ethereum and Cardano co-founder Charles Hoskinson, to question who Kaplan and Prometheum are and why they seem unheard of. "Who the hell are these Prometheum Guys," Hoskinson tweeted.
The Wall Street-based firm was founded in 2017 by Aaron and Benjamin Kaplan, who are also listed as attorneys at the financial services law firm Gusrae Kaplan.
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