- U.S.-registered securities platform Prometheum will manage ETH as the first digital asset security for institutional clients.
- The development has ignited criticisms regarding ETH’s preferential treatment.
- Some believe it potentially strengthens the assertion that ETH could be considered a security.
In a recent post on X, Prometheum, the only U.S.-registered crypto securities platform, disclosed that the first virtual asset it will manage for institutional clients will be Ethereum (ETH). The notification particularly mentioned ETH as “the first digital asset security for institutional custody.”
Moreover, Prometheum Co-Founder Aaron Kaplan reportedly confirmed the development during a recent interview, in which he remarked:
We want to be able to service the largest market cap and most liquid token. Ethereum is first, and there should be many more thereafter.
This recent announcement of ETH as the inaugural “digital asset security” for institutional custody has ignited scrutiny regarding ETH’s preferential treatment in the eyes of U.S. regulators.
For instance, notable crypto personalities like on-chain sleuth Mr. Huber remarked that even Ethereum supporters find it difficult to believe their fortune with U.S. regulators. He pointed out that Ethereum was the first crypto ecosystem to have its initial coin offering uncontested by the Securities and Exchange Commission (SEC).
He noted that ETH has now graduated to becoming the first asset to be listed as SEC-compliant crypto asset security. “This is how innovation works,” Mr. Huber lamented.
Reacting to Mr. Huber’s outburst, some crypto community members echoed similar sentiments, claiming the SEC is corrupt. Some individuals even claimed that the phrase “digital asset security” is not present in current U.S. laws.
Meanwhile, X user Steven Mizrahie contended that this development is not necessarily positive for ETH. He argued that it strengthens the assertion that ETH could be considered a security. Mizrahie added that if ETH were classified as a security and lacked proper securities disclosure during its initial sale, it could expose the ETH organization.
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