A group of Republican lawmakers want the Justice Department and Securities and Exchange Commission to investigate a crypto trading platform whose leadership argues existing securities laws apply to digital assets.
Republican lawmakers, led by Sen. Tommy Tuberville, want the Justice Department and Securities and Exchange Commission to look into Prometheum’s statements around Chinese investment.
Now several Republicans on the committee, as well as a senator uninvolved in the hearing, want the Justice Department and SEC to investigate the company. Sen. Tommy Tuberville, R-Ala., led the letter, and took issue with what he said is Prometheum’s largest outside investor — China-based company Shanghai Wanxiang Blockchain, Inc. and its subsidiary HashKey Digital Asset Group, Ltd., one of the largest crypto firms in Asia. Reps. Blaine Luetkemeyer, R-Mo., Barry Loudermilk, R-Ga., Ralph Norman, R-S.C., Byron Donalds, R-Fla., and Mark Alford, R-Mo., also signed the letter.
to the Financial Industry Regulatory Authority, which approved Prometeum as a special purpose broker dealer, and the SEC.before the House Financial Services Committee last month. Hashkey made an investment into Prometheum in 2018, and Prometheum and Wanxiang entered into a “development agreement,” Kaplan said, but added that a year later it became clear that “joint development was not viable.”
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