Startup Waiting for SEC Approval Gets $12 Million in Seed Funding

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Companies looking to operate in the blockchain and crypto space very rarely get in touch with the US Securities and Exchange Commission (SEC), but one startup is changing all of that. Prometheum is looking to make peace with the SEC and gain its approval to sell security tokens to investors. In fact, on the back of the move, Prometheum secured $12 million in seed funding round led by Hashkey Digital Asset Group.

Trading Tokenized Securities

Prometheum is working on creating this ecosystem where investors who want to invest in cryptos with the hope of turning a profit. These cryptocurrencies are deemed securities by the SEC and therefore the broker requires a special license from the SEC to be able to offer this sort of trading, similarly to a stock trading app like TD Ameritrade for example. Once it is approved by the SEC, it will become a fully compliant issuance, trading, clearing & settling platform for tokenized securities – perfect for crypto investors.

SEC Clamping Down on Crypto Markets

The SEC has had a pretty good year when it comes to clamping down on fraudulent and scam projects in the crypto world. While it might have taken a few cases too far, lost a few cases. and still not quite understood the difference between cryptos and securities, the SEC has been very consistent and thorough. However, this approach is starting to stifle development and progress in the crypto industry.
In a bid to help the SEC approve more projects and boost the development and growth of the American crypto industry, a group of congressmen are trying to get the SEC to change its definition of a security to something a little more modern. This would have a huge impact on the crypto world and would help the SEC catch more fraudulent projects.

STOs Represent the Future

Stock Token Offerings (STOs) are slowly becoming more popular and could be the future of the crypto space. As people slowly begin to understand that utility tokens aren’t investments, they are turning to stock tokens for their investment portfolios. To cater to this demand, more projects are opting for STOs rather than ICOs, and are giving away a slice of the business with these unique stock tokens. An STO is the crypto version of an IPO, but without all the paperwork and formal bits in the middle. Many firms are opting for these funding options, and Prometheum is now giving them a place to trade.
If Prometheum receives its license from the SEC, it will become the first Regulation A security token trading platform in the US and will quickly become a hub for stock token traders. 2019 is already shaping up to be a huge year for the crypto world, all eyes are on the SEC.