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The article discusses the potential implications of Prometheum’s unique position in offering custody and trading of digital assets, including Ethereum, as a security. With licenses to offer both custody and trading, Prometheum could establish itself as the only platform for legally trading ether, creating a natural monopoly.
The uncertainty lies in how the SEC will respond to this situation. There is speculation about whether the SEC will step in to officially designate ether as a security or if they will remain neutral. Mike Selig, a fintech lawyer at Willkie Farr & Gallagher, suggests that the SEC is likely to remain neutral, as they have done in the past with crypto-related matters. However, under the terms of the SEC’s special-purpose broker-dealer, Prometheum has the authority to designate assets as securities to list on its platform, subject to meeting certain criteria such as the Howey Test.
These developments have implications for both Prometheum and the broader crypto industry. The article highlights the uncertainty surrounding the SEC’s stance on Ethereum and how Prometheum’s actions could influence the regulatory landscape. It raises questions about the SEC’s approach to regulating crypto assets and the potential impact on the market.
