Bang for the buck in the US. The first crypto company has received a license under SEC requirements. The press release states that a crypto startup has received its first license under Securities and Exchange Commission (SEC) regulations.
New York-based Prometheum Ember Capital says the permit allows it to act as a qualified custodian of digital assets on behalf of retail and institutional clients. The company will serve as a qualified custodian under the Securities and Exchange Act (“SEA”) 15c3-3 Customer Protection Rule as required under federal securities laws.
To obtain the license, firms must meet specific requirements and may only hold securities of digital assets. It said this excludes crypto assets such as bitcoin, which are not securities.
According to the CFTC and chief Rostin Benham, Bitcoin is a commodity and therefore does not fall under SEC oversight.
The drafting of the regulation, which is now being applied for the first time, has been in the works for a long time, according to SEC officials. The new rules are intended to expand the “security requirement” in the crypto market.
Currently, regulators are cracking down on crypto companies in the US. Whether the license approval and the required regulatory clarity strengthens remains to be seen.