Plume's legal advisor urges the SEC to expedite the formulation of tokenization rules and advance the DeFi process

According to Forbes, Plume's legal advisor B. Salman Banaei testified before Congress, strongly urging the U.S. Securities and Exchange Commission (SEC) to expedite the development of tokenization rules while advancing the full ATS (Alternative Trading System) 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 setting volume and product limitations would fail to attract large institutions, "because they will not invest resources in an infrastructure that may not exist in two or three years." He also suggested that the SEC seek feedback on the current incompatibilities in the rules 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 there are only 10 months left in the current SEC leadership window, and action must be taken quickly to promote the development of real-world asset (RWA) tokenization.