As the SEC tightens custody regulations, the clearance represents the first time a supplier of digital asset custody has been subject to federal regulation.
Prometheum Ember Capital, a Prometheum subsidiary, has been given the go-ahead by FINRA to operate as a special purpose broker-dealer for securities relating to digital assets. With the achievement of this regulatory goal, Prometheum is now qualified to act as a custodian for securities backed by digital assets, serving both retail and institutional clients.
Prometheum Ember Capital has the status of a qualified custodian according to FINRA’s designation of it as an SPBD, subject to the rules laid down in the United States Exchange Act of 1934.
Prometheum Ember Capital will now be the first company to offer custody services for digital assets as a qualified custodian, marking an important development in the rapidly changing field of digital asset protection.
Differentiating from State-Licensed Digital Asset Custody Providers
The FINRA approval of Prometheum Ember Capital shows its adherence to federal regulatory requirements, distinguishing it from other providers of digital asset custody that only hold state-issued permits. This honor demonstrates Prometheum Ember Capital’s dedication to respecting industry standards and offering secure custody options for securities backed by digital assets.
Prometheum co-CEO Aaron Kaplan said in a statement:
“Digital asset investors in the U.S. are currently custodying cryptocurrencies that are securities through platforms that don’t offer the same SEA 15c3-3 [Rule] customer protections required by the federal securities laws.”