TL;DR
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The SEC recently granted a “special purpose broker-dealer” license to a crypto trading platform called Prometheum.
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Use this as an example to reference and say, “Look, crypto exchanges can comply and be fine under current laws.”
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The only problem is: Prometheum doesn’t trade cryptocurrencies – in fact, the platform isn’t even live yet.
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The trick of all this is: Prometheum will not be able to go live and support most crypto transactions without violating current securities laws.
Full story
You know that Flat Earth documentary on Netflix, Behind the Curve?
It’s the one where they end up conduct an experiment to show that the earth is flat, but accidentally prove otherwise.
This latest SEC story is much like that.
ICYMI: the SEC maintains that current securities laws (written in the 1930s) do not require amendments for crypto exchanges like Coinbase to be able to:
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Get in agreement
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Continue to work normally
Coinbase has responded something along the lines of:
“We don’t see a way to comply without these laws crippling our business/industry – and if we’ve asked you to show us how to comply safely, we’ll get radio silence (and lawsuits) back.”
Good…
The SEC recently granted a “special purpose broker-dealer” license to a crypto trading platform called Prometheum.
(Use this as an example to point to and say, “Look, crypto exchanges can comply and be fine under current laws.”)
…only problem is:
Prometheum doesn’t trade cryptocurrencies – in fact, the platform isn’t even live yet.
The trick of all this is:
Prometheum will not be able to go live and support most crypto transactions without violating current securities laws.
So while the SEC parades Prometheum around as the poster child of a compliant crypto exchange… it more or less proves otherwise.
BBTCE (big ‘behind the curve’ energy).