Key Points
- Cameron Winklevoss expresses disbelief and concern over the registration of Prometheum, despite their lack of significant products and limited recognition in the crypto community.
- Winklevoss highlights the urgent need to update outdated securities laws to align with the evolving digital landscape.
- Prometheum, founded in 2017 by Aaron and Benjamin Kaplan, gained attention after Aaron Kaplan testified before a US House Committee, advocating for clear regulations in the crypto space.
- Prometheum’s rise in popularity and support for current regulations have attracted criticism from the crypto community.
Winklevoss Urges US on Modernization of Laws
Cameron Winklevoss, the Co-Founder of Gemini, expressed his disbelief after SEC Chairman Gensler mentioned in an interview with The Wall Street Journal that certain crypto companies, including Prometheum, had somehow managed to register. Winklevoss quickly voiced his concerns, pointing out that Prometheum had been around for just six years without launching any products and having limited recognition in the crypto community.
And like clockwork, @GaryGensler went on record today with the Wall Street Journal saying “some have actually registered” and “there’s a path forward here.” That “some” he is referring to is Prometheum. A crypto company that has failed launch a product in 6yrs and that literally… pic.twitter.com/wDmF5QdtMN
— Cameron Winklevoss (@cameron) June 15, 2023
In addition, Winklevoss emphasised the urgent need of updating the existing securities laws, which were incorporated in 1933, to align with the evolving digital landscape. He cautioned that by following outdated regulations, the United States is falling behind which is potentially pushing the industry to shift to offshore areas, loss of employment opportunities, slow economic progress, and even potential national security concerns.
Prometheum Fires Back
Prometheum was founded in 2017 by Benjamin and Aaron Kaplan a blockchain firm based on Wall Street, got attention after Aaron Kaplan gave testimony in front of a committee in the United States House, voicing his concerns for clear regulations in the crypto space. While many industry figures advocate for specialized laws for cryptocurrencies, Kaplan is a bit different as he believes in coordinating with the SEC by advocating for crypto regulation within the framework of existing securities laws.
This unique perspective has sparked debates and drawn a lot of attention from the crypto community. During his testimony, Kaplan expressed admiration for the SEC, praising it as the most competent regulatory agency for financial markets globally. He emphasized that the regulatory frameworks established by the SEC offer a pathway for compliance and a positive trajectory for cryptocurrencies in the United States.
Kaplan argued that the SEC should regulate crypto exchanges and custodians, criticizing unregulated platforms as being “reckless” and “unlawful.” He maintained that existing securities laws are applicable to cryptocurrencies and believed that those seeking new crypto-specific laws are merely resistant to compliance.
Prometheum’s rapid popularity increase and support for the current regulations have led to strong criticism. People in the cryptocurrency community argue that Prometheum has not shown significant products or accomplishments despite being in the crypto space for years. There is a lot of talk online about Prometheum and its possible affiliations with the Chinese Communist Party based on information in a document filed with the Securities and Exchange Commission in 2019 that mentions “strategic partners and joint ventures.” Social media is filled with discussions and rumours about this topic.
End Note
Cameron Winklevoss, Co-Founder of Gemini, expressed concern over the SEC’s registration of Prometheum, a crypto company with limited recognition and no significant products. He emphasized the need to update outdated securities laws to adapt to the digital landscape. Prometheum gained attention after its founder, Aaron Kaplan, testified before a US House Committee, advocating for clear regulations in the crypto space. Prometheum’s support for existing regulations and its rise in popularity have attracted criticism from the crypto community. Speculation and rumors about possible affiliations with the Chinese Communist Party have also circulated online, based on a document filed with the Securities and Exchange Commission in 2019 mentioning “strategic partners and joint ventures.”
