The SEC Chair Gary Gensler is facing scrutiny from Republican members of the House Financial Services Committee over the approval of Prometheum Inc. as a broker-dealer for digital assets.
The lawmakers, led by Patrick McHenry (R-N.C.), the committee chair, sent a letter to Gensler asking him to explain how Prometheum obtained the SEC registration, which is unique among crypto firms, and why it was granted at that particular time.
They also wrote to the head of FINRA, an industry-funded group that oversees securities standards under the SEC’s supervision.
The letters suggest that the SEC may have favored Prometheum as a showcase for Gensler’s view that existing laws are sufficient to regulate and monitor crypto in the U.S., just as the committee was preparing to introduce new legislation on digital assets.
