The crypto platform Prometheum, registered in the U.S., has launched Ethereum custody services, and the SEC may be forced to declare Ethereum as a security

ChainCatcher news, according to CoinDesk, as a cryptocurrency company compliant with the U.S. Securities and Exchange Commission (SEC) standards, Prometheum is seeking to carve out a new path, starting with custody services, intending to conduct business by holding customers' ETH. Company executives stated that before launching trading operations, the company will also introduce several other tokens, aiming to open in the second quarter of 2024.

The company has been a target of criticism and debate within the industry and has only recently passed the final hurdle with regulators to begin custody services, currently without any revenue. Co-CEOs Aaron Kaplan and Benjamin Kaplan stated that they will be holding customers' ETH by the end of next month. By then, the company will either prove its executives' claims that cryptocurrency can be handled in a way that reassures securities regulators in the U.S., or it will validate the opponents' assertion that cryptocurrency cannot meet the expectations of the SEC.

Prometheum has entered and registered, but what will happen next remains unclear. While testing these gray areas, it may also help determine whether the SEC intends to classify ETH as a security.