Cryptocurrency exchange Gemini’s co-founder, Tyler Winklevoss, has strongly criticized the Securities and Exchange Commission (SEC) for its inconsistent actions. He highlighted that the regulatory body has recently filed legal actions against well-known cryptocurrency exchanges such as Binance, Coinbase, Gemini.
However, it has surprisingly given its approval to Prometheum, a lesser-known crypto exchange.
Skepticism Surrounding Prometheum
During his evaluation, Tyler Winklevoss observed that Prometheum has been in operation for over six years but has not yet released any products. This lack of progress and failure to fulfill commitments has raised concerns about the exchange’s capability and reliability.
Furthermore, the fact that Prometheum has hired several former employees of the SEC and the Financial Industry Regulatory Authority (FINRA) has raised eyebrows in the industry. This is seen as an uncommon occurrence.
Another factor contributing to skepticism is the appointment of a chief technology officer (CTO) by Prometheum. Interestingly, the CTO is reportedly based in the Isle of Man but has no discernible online presence. This further adds to the lack of transparency surrounding the exchange. Tyler Winklevoss believes that this lack of visibility further fuels doubts about Prometheum.
Calls for Caution by Critics
Adam Cochran and other critics argue that these factors should not be taken lightly. Also, it should serve as red flags for both investors and the wider cryptocurrency community. They assert that Prometheum, which the SEC has portrayed as a model of compliance, must demonstrate its ability to fulfill its promises. These concerns should not be easily dismissed as conspiracy theories.
Moreover, an increasing number of individuals are starting to question the SEC’s relationship with Prometheum and the potential motivations behind its actions.
Prometheum’s Approval and Future Plans
In February 2023, the SEC granted Prometheum the status of a special purpose broker-dealer (SPBD), which allows the exchange to facilitate cryptocurrency trading. Prometheum plans to leverage this SPBD status to provide various services, including custody, trading, and clearing.
Additionally, the platform intends to collaborate with regulators in developing a more comprehensive regulatory framework for the cryptocurrency industry.
SEC’s Contrasting Approach Draws Criticism
Nevertheless, the SEC’s differing treatment of Prometheum compared to its actions against prominent exchanges like Coinbase has sparked concerns and invited criticism. Many question the underlying motivations behind the SEC’s seemingly lenient stance towards Prometheum.
Especially considering the doubts surrounding the exchange’s historical performance, alleged ties with China, and previous regulatory issues.
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