Firms Discover SEC-Compliant Route for Crypto Registration
The Financial Industry Regulatory Authority (FINRA), an industry-funded oversight arm created by the SEC, has approved its first broker-dealer with custody rights for digital assets securities, Prometheum Ember Capital LLC. Prometheum Capital, the parent company, was purpose-built to comply with SEC regulations under the assumption that almost all tokens are securities under U.S. law. The company has been approved as an alternative trading system (ATS) for digital assets securities and will go live in Q3. The company's broker-dealer will also maintain custody of customer's assets, which could be a particularly important point as the SEC considers a proposal that could require the investment advisers the agency oversees to keep customers' crypto assets only with "qualified custodians."