Prometheum, a startup pioneering a controversial approach to crypto compliance, has missed its first-quarter target for launching its custody and trading operations. Despite the delay, the firm assures that it's finalizing technical details, including a rigorous smart contract auditing process. Prometheum aims to become the first crypto custodian and broker dealer to treat tokens like securities, including Ethereum's ether (ETH).

The company's executives had initially announced a first-quarter launch, but the deadline has passed, leaving the crypto sector anxious about the implications. Prometheum's approach has sparked debate, with some industry insiders and Republican lawmakers criticizing the firm for aligning with the SEC's stance on token regulation.

Prometheum's co-CEO Benjamin Kaplan stated that the firm is "excited to be nearing the public launch of its custodial services for institutional clients." He emphasized that building proprietary technology under federal securities laws requires meeting high regulatory standards. The firm's wallet system utilizes smart-contract technology, which is currently being ironed out.

The delay has raised questions about the wider crypto industry's legal battles with the SEC. Prometheum's approach represents a contrarian view, acknowledging the SEC's position that most tokens are securities. As the firm finalizes its launch preparations, the crypto sector eagerly awaits the outcome, which may set a precedent for token regulation.