Prometheum, a digital asset trading and custody firm, has announced the addition of Uniswap (UNI) and Arbitrum (ARB) tokens to its custodial platform. These tokens will be classified as digital asset securities, which might influence regulatory discussions.
Prometheum's Decision
Prometheum's decision to classify Uniswap (UNI) and Arbitrum (ARB) tokens as securities has raised discussions within the crypto community. This stance also applies to Ether (ETH), which the firm had previously classified as a security. Such classification of decentralized assets could have significant consequences, particularly in the context of current and future regulations.
Expanding Custodial Services
Prometheum aims to be a titan in the digital asset custody market by extending its services to ETH, ARB, and UNI through its subsidiary Prometheum Capital. Prometheum Capital is a Special Purpose Broker-Dealer (SPBD) registered with the United States Securities and Exchange Commission (SEC) and FINRA. The company initially planned to start offering custodial services in the first quarter of 2024, but the timeline has been shifted to the third quarter. Future plans include diversifying its digital asset portfolio to encompass debt, equities, ETFs, mutual funds, options, and other investment contracts issued and transferred on the blockchain.
SEC and CFTC Disagreements
Some critics have questioned Prometheum's decision to custody ETH, especially against the backdrop of the CFTC's ruling that ETH is a commodity. CFTC Chairman Rostin Behnam also noted potential conflicts, stating that a broker-dealer holding ETH may be violating the agency's rules. The SEC has also indicated that UNI could be classified as a security, which may have legal consequences. Uniswap Labs, the company behind UNI, has tried to dismiss this notion, stating that the SEC's legal basis is weak and has been dismissed by courts. In a May blog post, Uniswap Labs stated, 'The SEC’s aggressive theories aim to expand its jurisdiction beyond exchanges to communications technology – and beyond securities to all markets.'
Following the announcement, both UNI and ARB tokens experienced a positive market reaction, with UNI up 10% and ARB rising by 1% in the past 24 hours.
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