Much of the crypto sector has been apprehensive about the ribbon cutting on Prometheum's custody and trading operations, which the firm said will full

Prometheum's Contentious Answer to Crypto Compliance Is Running Late

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2024-05-09 22:30:05

Much of the crypto sector has been apprehensive about the ribbon cutting on Prometheum's custody and trading operations, which the firm said will fully comply with U.S. Securities and Exchange Commission (SEC) demands. The doors have so far stayed shut well past the target date, but the company explained it's still finishing a process for auditing smart contracts.

"We expect completion soon and will move towards the launch of our custodial services for institutional clients imminently thereafter," said Prometheum Inc.'s co-CEO Benjamin Kaplan, in a statement to CoinDesk.

Prometheum is a crypto-native startup that's the first to get a special-purpose broker dealer approval under SEC regulations and is now licensed to hold, trade and clear transactions in crypto securities. Its executives had originally said they'd have a custody operation rolling in the first quarter of this year – a date now more than five weeks past. But Kaplan said the firm is "excited to be nearing the public launch of its custodial services for institutional clients."

"Building proprietary technology subject to federal securities laws requires us to meet the high standards set by our regulators and expected by our clients," he said. "We have been finalizing a rigorous smart contract auditing process conducted by a leading auditing firm."