The U.S. Securities and Exchange Commission (SEC) has recently come under scrutiny from members of the House Financial Services Committee (HFSC). These politicians, led by Committee chair Patrick McHenry (R-NC), have expressed concerns over the SEC’s approval of Prometheum, a relatively unknown crypto broker. The Republicans on the Committee have labeled this approval as “shady” and are vocally questioning the timing of this decision, given the broader context of cryptocurrency regulation in the United States.

It’s worth mentioning that during the same month FINRA approved Prometheum, the HFSC held hearings specifically related to the legislation of digital assets.

The goal was to create definitive guidelines for the types of crypto assets over which the SEC would have jurisdiction. SEC Chairman Gary Gensler, who maintains that the current securities laws are sufficient and clearly defined, has used Prometheum’s approval to illustrate that there is a clear route for existing companies to achieve compliance.

As a final note, the HFSC has demanded that the SEC and FINRA disclose all documents and communications pertaining to Prometheum’s approval. They have set a deadline for this disclosure: 5 pm on August 22, which is exactly one week from today.

In this unfolding situation, the HFSC is clearly urging for transparency and clarity, challenging what they perceive to be a dubious approval process by the SEC.