Partners at Davis Polk, Joe Hall and Zach Zweihorn, dispute Aaron Kaplan’s assertion that his company, Prometheum, has found a legally compliant way to navigate the crypto landscape in the United States. Kaplan’s claims, they suggest, misinterpret or misrepresent the law.

Kaplan’s proposal, that listing tokens simply involves an updated Form ATS, is rejected by Hall and Zweihorn, who assert this is not sufficient. They also elaborate on the token sale process, explaining that a checkbox on Form D does not automatically classify a token as a security.

Further challenging Kaplan’s argument, they disagree with the idea that tokens part of a Form D filing can be traded after a one-year freeze, highlighting potential impacts on network development and technical feasibility issues, especially for Ethereum-based tokens.

Despite Prometheum’s claims of having resolved these complexities, Hall and Zweihorn remain dubious, emphasizing the necessity for more sophisticated and tailored regulation.