Prometheum's Ethereum Custody Plan May Force SEC's Hand on Security Status

The crypto firm's controversial strategy aims to compel regulatory clarity on Ethereum, potentially reshaping the industry's legal framework.

Prometheum, a New York-based crypto firm, plans to launch custodial services for Ether, aiming to compel the SEC to classify Ethereum as a security.
The SEC has yet to officially declare Ethereum's legal status, while Prometheum's move could force a resolution on the matter.
Prometheum has received regulatory approval to operate as a special purpose broker-dealer for digital asset securities, a first in the industry.
The firm's approach has sparked debate within the crypto industry and among lawmakers, with some viewing it as a compliant path for crypto trading.
Prometheum's custodial services for Ether are set to launch by late March for institutional clients, potentially setting a precedent for the crypto industry.