Plume legal advisors urge the SEC to accelerate the development of tokenization regulations and promote DeFi processes

DeepFlowTech · 2026-03-28T00:40:19+00:00

Plume legal advisor Banaei testified before Congress, calling for the U.S. SEC to accelerate the development of tokenization regulations and to promote full ATS registration for DeFi protocols. He criticized the SEC for relying too heavily on innovation exemptions, suggested seeking public input to address rule incompatibility issues, and emphasized that to attract large institutions, the development of real-world asset tokenization must be expedited.

DeepFlowTech

2026-03-28 00:40:19

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Deep Tide TechFlow news, on March 28, according to Forbes, Plume’s legal advisor B. Salman Banaei testified before Congress, strongly urging the U.S. Securities and Exchange Commission (SEC) to accelerate the development of tokenization rules while advancing the complete Alternative Trading System (ATS) registration for DeFi protocols, rather than relying solely on “innovation exemptions.”

Banaei criticized the SEC for “putting all its eggs in one basket with innovation exemptions,” calling this approach “foolish,” and warned that imposing trading volume and product limitations will fail to attract large institutions, “because they won’t invest resources in an infrastructure that may not exist in two or three years.” He also suggested that the SEC seek input on current rule incompatibilities and develop permanent solutions.

Plume was approved by the SEC in October 2025 to become a registered transfer agent, capable of handling shareholder records, transfers, and dividends for on-chain tokenized securities, and is currently awaiting a FINRA broker-dealer license. Banaei pointed out that the current SEC leadership window is only 10 months remaining, and action must be taken quickly to promote the development of real-world asset (RWA) tokenization.

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