Can Gensler-Approved Crypto Companies Survive the Shift?

As the SEC’s regulatory approach shifts, companies once lauded for compliance brace for the challenges ahead.

The rise of Donald Trump to the presidency and Gary Gensler’s forthcoming resignation as SEC chairman may lead to sweeping changes in crypto regulation.

The new administration is poised to redefine how cryptocurrencies are classified. While Gensler maintained that nearly all tokens, except Bitcoin, were securities, his successor is likely to take a more liberal approach.

In anticipation of relaxed rules, firms like Coinbase and Robinhood have already relisted SOL and XRP—assets previously delisted due to SEC scrutiny. 

But what happens to the companies that thrived under Gensler’s oversight?

Prometheum, often considered a prime example of Gensler’s influence, became the first to earn an SPBD license to trade crypto securities, a move designed to place them ahead of competitors.

However, with Gensler’s departure and regulatory changes underway, Prometheum’s reliance on a strict SEC framework could now backfire.

Was Prometheum handpicked by Gensler? Source: Fortune

In the face of criticism over its close ties to the SEC, Prometheum’s leadership remains confident.

Aaron Kaplan, one of the company’s directors, stated in an interview with Fortune that they aim to expand into tokenized traditional financial assets like stocks, bonds, and ETFs.

We expect that President Trump’s administration will oversee this market transformation as trillions of securities are issued on a blockchain,

Kaplan said.

Doubts persist about the viability of tokenization. According to Matt Walsh of Castle Island Ventures, Prometheum has yet to demonstrate meaningful adoption of its platform. Despite growing curiosity from financial giants such as Goldman Sachs and BlackRock, tokenized assets still occupy a niche corner of the market.

Prometheum has also come under political fire. Republican members of Congress, including John Rose, accused the company of having links to China—claims the company has flatly denied.

Related: US Lawmakers Probe SEC & FINRA

With the new Congress poised to increase its oversight of the SEC, companies linked to Gensler may face even greater hurdles.

Prometheum is still working to secure clients and advance negotiations. Its future now rests on two key factors: adapting effectively to market changes and weathering political turbulence.