WASHINGTON, D.C. - Congressman Mike Flood and Republicans from the House Financial Services Committee sent letters to federal regulators regarding approval of Prometheum Ember Capital as the first and only special purpose broker-dealer for digital assets.

Flood is raising questions about the risks to national security posed by Prometheum’s reported ties to the Chinese Communist Party.

Lawmakers, including Financial Services Committee Chairman Patrick McHenry, say the timing of the approval precedes House action to regulate digital asset markets. Flood said the timing of the approval could be intended to demonstrate that legislation is not needed because there is already a regulatory framework.

A media release says Prometheum is developing blockchain trading software with China and is 20 percent owned by the  Chinese.