Prometheum launches first crypto trading as regulatory edge vanishes

U.S. digital asset platform Prometheum launched Ethereum (ETH) trading last week for the first time in a decade, but its hard-won regulatory advantage has reportedly become meaningless, according to Decrypt. Since its launch about 10 years ago, Prometheum has raised nearly $100 million and, in 2023, became the first firm in the industry to obtain a special purpose broker-dealer license from the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The move was considered unusual at the time, given the Biden administration's then-critical stance on cryptocurrencies. However, the outlet explained that the regulatory environment has fundamentally changed following a shift in government, with the SEC withdrawing crypto-related lawsuits and investigations. Decrypt added that under the SEC's revised guidance, general broker-dealers can now custody crypto securities under existing customer protection rules, making the specialized license unnecessary and erasing Prometheum's regulatory edge.