Uniswap, Arbitrum face potential securities classification after inclusion in Prometheum's custodial platform

Source Fxstreet
  • Prometheum Capital announced its plans to include UNI and ARB tokens as digital securities on its custodial platform.
  • Prometheum may stir controversy from the announcement as the company supports the SEC's claim that several cryptocurrencies are securities.
  • The announcement comes at a time when Uniswap Labs received a Wells notice from the SEC.

Prometheum Capital announced in a press release on Wednesday that it plans to add Uniswap (UNI) and Arbitrum (ARB) tokens as part of its custodial platform that is set to launch in the coming months.

Prometheum could stir controversy following plans to add UNI and ARB as digital securities

Prometheum Capital, an arm of digital assets investment company Prometheum Inc., unveiled plans to expand its custodial platform with the inclusion of UNI and ARB tokens after recently conducting a "soft launch" with ETH.

The company aims to provide custody for these three assets to institutional and corporate investors in compliance with the Securities & Exchange Commission (SEC) license. 

The custodial platform is expected to kick off operations next month, treating these three assets as securities. Prometheum Capital claims that this move will enhance transparency and reduce costs by eliminating the need for transfer agents to keep records.

The company received licenses from the SEC last year to operate as a special-purpose broker-dealer, the first of its kind among crypto exchanges. It is also permitted by the Financial Industry Regulatory Authority (FINRA) to deal in crypto clearing and licensing services.

The announcement may stir criticism from the crypto community toward Prometheum as it solidifies its support with SEC Chair Gary Gensler, who claims that most crypto assets are securities. 

This sets the company at odds with many of the other top crypto companies in the industry, especially with recent events where key players in the crypto industry have expressed dissatisfaction with current securities laws.

Both UNI and ARB are viewed as native tokens for Uniswap exchange and the Arbitrum network, respectively, and are not directly sold by a central body to customers.

Meanwhile, Uniswap Labs had earlier received a Wells notice from the SEC signifying that the regulator is investigating the exchange and may take enforcement action. The notice included that Uniswap may be using UNI tokens as securities. However, Uniswap Labs strongly opposed the claim, stating that they are baseless.

UNI and ARB are both up 10% and 1% in the past 24 hours, respectively.

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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