In the Press
June 27, 2023

Brokerage Firm Prometheum Wants to Use Exemption to Trade Crypto (The Wall Street Journal)

A small brokerage firm thinks it has a blueprint to bring crypto trading into the regulated market. Some securities lawyers question whether Rule 144 can be used to trade cryptocurrencies that have been trading on crypto exchanges that don’t follow SEC rules. Meeting the exemption’s requirements, including proving that the seller held the asset for at least a year, can be difficult to establish in crypto where trading was meant to be anonymous, said David Adams, Financial Services counsel. “Any broker-dealer that embarks down this path is going to be under incredible scrutiny,” Adams said. “Just because you are approved…that does not mean that goodwill will necessarily continue if you start to list some crypto assets or tokens that the SEC” doesn’t agree with, he said to The Wall Street Journal.