TechFlow news — House Financial Services Committee Chairman Patrick McHenry, along with other members of Congress, sent a letter to Financial Industry Regulatory Authority (FINRA) CEO Robert Cook and Securities and Exchange Commission (SEC) Chair Gary Gensler, demanding a detailed explanation on how Prometheum was approved as a special purpose broker-dealer. They also raised concerns about Prometheum's alleged ties to Chinese companies.
Prometheum responded by stating that it has specifically developed its technology to build digital asset securities market infrastructure compliant with federal securities laws. This technology will serve as the foundation for a regulated and orderly digital asset securities market, protecting investors and serving their best interests. Prometheum noted that its prior relationship with Wanxiang and its affiliates was reviewed by the SEC, which concluded its investigation, and that the Committee on Foreign Investment in the United States (CFIUS) never initiated a formal review.
It is reported that Prometheum entered into an agreement with Wanxiang in 2018 to develop blockchain trading software, but the agreement was later terminated.
