Maxine Waters Calls for Strict Regulations on PayPal’s Stablecoin

• Republican members of Congress are demanding information about Prometheum Ember Capital LLC’s ability to secure its registration status from FINRA and the SEC.
• Prometheum is a relative upstart that recently secured SEC approval as a registered Special-Purpose Broker-Dealer.
• Questions have arisen about the context of Prometheum’s approval, especially considering its quick rise to prominence over the past year.

Republican Members Demand Information on Prometheum

Led by Chairman Patrick McHenry (NC-10), Republican members of Congress are petitioning two major financial regulators for information concerning the relative upstart’s ability to secure its registration status. The inquiries are directed toward the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).

Prometheum: A Quickly Rising Upstart

Prometheum Ember Capital LLC was a relatively unknown company at the beginning of 2023, but it has quickly risen to prominence and now has gained SEC approval as a registered Special-Purpose Broker-Dealer. This has drawn scrutiny, with questions arising about the context of Prometheum’s approval, especially considering its meteoric rise in such a short period of time.

Congressional Inquiry into Approval Process

In light of these questions, Congressional Republicans have decided to probe further into how Prometheum was able to secure this regulatory approval so quickly. The inquiry seeks to answer whether or not any special treatment or favors were granted in order for Prometheum to gain their registration status.

FINRA & SEC Responses Expected Soon

The inquiry has been made publicly known, with both FINRA and SEC expected to respond in due time with more information regarding their own processes when it comes to approving companies like Prometheum for registration. Whether or not any additional regulations will be put in place following their responses remains yet unseen.

Conclusion

The Congressional inquiry into how this upstart company was able to receive SEC approval is one worth taking seriously, as it could determine whether or not similar companies can receive similar treatment going forward in other cases. We will have to wait and see what response FINRA and SEC provide before we can come closer towards potential answers regarding this issue.