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

CycleProphet · 2026-03-28T00:41:24+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.

CycleProphet

2026-03-28 00:41:24

Abstract generation in progress

Deep Tide TechFlow message, March 28, according to Forbes, Plume legal counsel B. Salman Banaei testified before Congress, strongly urging the U.S. Securities and Exchange Commission (SEC) to accelerate the development of tokenization rules, while also moving forward with the complete ATS (alternative trading system) registration of DeFi protocols, rather than relying only on an “innovation exemption.”

Banaei criticized the SEC for “putting all its eggs in the innovation exemption basket,” saying this approach is “stupid,” and warning that setting trading-volume and product limits won’t attract large institutions, “because they won’t invest resources in infrastructure that might not exist in two or three years.” He also suggested that the SEC seek comments on incompatibilities with the current rules and develop a permanent solution.

Plume was approved by the SEC in October 2025 to become a registered transfer agent, able to handle shareholder records, transfers, and dividends for tokenized on-chain securities, and is currently awaiting its FINRA broker license. Banaei noted that the SEC leadership window has only 10 months left, so action must be taken as soon as possible to drive the tokenization development of real-world assets (RWA).

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