SEC Inspector General Urged To Investigate Prometheum SPBD Approval Amidst Crypto Regulatory Scrutiny
By BtcCasey         

A nonprofit organization called the Blockchain Association has requested an investigation into the Securities and Exchange Commission (SEC) and its approval of Prometheum Ember Capital as a Special Purpose Broker Dealer (SPBD). The association is concerned about potential ethical issues and improper practices in the approval process. They criticize the lack of regulatory clarity surrounding U.S. securities laws for digital assets and accuse SEC Chair Gary Gensler of displaying hostility towards the digital assets industry through enforcement actions and proposed rulemaking.

The approval of Prometheum as an SPBD is particularly concerning to the association because other companies with legitimate business models have faced denials or delays in obtaining similar licenses. The fact that Prometheum has no working product or assets at the time of license approval raises further questions. The association suggests that Prometheum may have received preferential treatment or used personal connections to gain an unfair advantage.

The Blockchain Association has submitted a Freedom of Information Act request to the SEC, seeking relevant documents and communications. They are urging the initiation of an investigation to address their concerns and provide clarity. The investigation's outcome will determine whether there was any impropriety in the approval process and validate the concerns raised by the association.

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⚡️ What Is L402?

What Is The Lightning HTTP 402 Protocol, And Why Is It Important?
By BtcCasey

The Lightning HTTP 402 Protocol, also known as L402, is a significant tool in distributed networks that enables charging for services and authenticating users. L402 combines two powerful technologies, Macaroons and the Lightning Network, to achieve this functionality. Macaroons are tokens used for authentication and contain permissions that can be verified using a root key, making them suitable for systems where checking the validity of each token is impractical. 

In L402, a Macaroon includes a payment hash, and to validate it, the user must present the Macaroon along with the preimage associated with the payment hash. The preimage is obtained by paying a Lightning Network invoice. A software called Aperture acts as an intermediary between the user and the service's API, forwarding valid L402 requests to the appropriate API endpoint and issuing new Macaroons and Lightning invoices to new users.

This protocol enables metered APIs, allowing services to charge for usage without requiring logins or passwords. The Macaroon, along with the preimage, ensures that the payer has made the payment. The L402 specification includes various characteristics such as Macaroon version, user identifier and payment hash, which links the Macaroon to the Lightning invoice. The Macaroon can also incorporate caveats that define access to specific services, capabilities, and constraints.

When verifying L402, the server employs the root key to confirm that the Macaroon was issued by the appropriate authority and that each caveat was properly implemented. The preimage is checked against the payment hash to ensure that all outstanding invoices have been paid.

In summary, L402 is a protocol that combines Macaroons and the Lightning Network to facilitate service charging and user authentication. It enables secure payments and authentication without relying on a central database, with Aperture serving as a software tool to assist in the process and enable the issuance of Macaroons and Lightning Network invoices by services.

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