Plume Network Discusses DeFi Sandbox with SEC

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Plume Network has initiated discussions with the U.S. SEC regarding the establishment of a DeFi sandbox and new tokenized securities rules. The talks took place on May 24-25, 2025.

Plume Network’s proposal could influence regulatory approaches, aiming to clarify DeFi’s role in the financial ecosystem.

Plume Network’s efforts to engage with regulators mark a significant move toward influencing the regulatory landscape. By proposing a DeFi sandbox, they aim to foster innovation while establishing new rule sets for tokenized securities.

“We’ve talked to every tokenization provider… every chain, every protocol, every ecosystem out there… and nobody can do this… until they came to Plume right because we’ve designed the whole ecosystem top to bottom to focus on this use case.” — Chris Yin, Speaker, Plume Network

The company highlights its commitment by subjecting all DeFi protocols to comprehensive security audits and testing. The recent $25 million RWAfi Ecosystem Fund further demonstrates Plume’s dedication to advancing RWA tokenization.

The proposal anticipates shaping how decentralized activities are assessed, potentially influencing how tokenized securities are governed. The financial community eagerly observes these developments for future impacts on investments.

If accepted, the proposal may lead to clearer regulations, affecting market dynamics in DeFi. Plume envisions enhanced opportunities in sectors like treasuries and luxury goods tokenization.

Historical regulatory approaches show a lack of clarity, prompting Plume Network to advocate for a sandbox model that encourages innovation. Informed decisions could reshape industry practices, yielding improved regulatory structures and market confidence.