- Plume Network proposes DeFi sandbox to SEC.
- Seeks new rules for tokenized securities.
- Focus on regulatory clarity and market expansion.
Plume Network, a Layer-1 blockchain, has submitted a proposal to the SEC, suggesting a DeFi sandbox for tokenized securities in the US. This initiative aims to establish new regulatory standards.
Plume’s proposal represents a critical step towards defining a regulatory framework for tokenized securities and DeFi protocols, potentially influencing the future of digital finance.
Plume Network, engaged in Real World Asset (RWA) tokenization, has partnered with PinLink on multiple DeFi initiatives. Recently, they proposed an open blockchain sandbox to the SEC, aiming for regulatory progress.
“An open blockchain sandbox will enable the Commission, in cooperation with participants and the public, to develop a new regulatory framework and guidance for tokenized securities and DeFi protocols.” – Plume Network, SEC submission
They have a history of auditing DeFi protocols and emphasizing code security. Their latest move includes proposing a safe harbor and robust testing standards for DeFi developments, enhancing accountability.
The DeFi sector anticipates clearer regulatory guidance, which Plume’s proposal could pioneer in the US, potentially broadening the DeFi ecosystem’s reach.
Financial implications are notable with a $25 million ecosystem fund launched to boost RWA tokenization efforts. High demand sees $64.4 million deposited in pre-deposit campaigns.
Historical precedents such as sandboxes in the UK and Singapore suggest positive outcomes; however, the unique US-focused DeFi sandbox concept is innovative. Clarity could impact DeFi tokens and overall market stability.
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