Blockchain company Plume Network has submitted a proposal to the U.S. Securities and Exchange Commission (SEC), suggesting a DeFi sandbox for tokenized securities. This innovative initiative aims to create clear regulations for this burgeoning sector, potentially impacting the future of digital finance in America. 📚
Plume Network, known for its work with Real World Asset (RWA) tokenization, partnered with PinLink on various DeFi projects and recently proposed an open blockchain sandbox to the SEC 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,” states Plume Network’s SEC submission. They also have a history of auditing DeFi protocols for code security and now propose a safe harbor and robust testing standards for further development. 🔒
This proposal has sparked excitement within the DeFi sector, as it could pave the way for clearer regulatory guidance in the U.S., ultimately expanding its reach.
With a $25 million ecosystem fund launched to boost RWA tokenization efforts and high demand leading to $64.4 million deposited in pre-deposit campaigns, this initiative holds significant promise. 💰
However, it’s important to remember that similar sandbox initiatives in the UK and Singapore have yielded positive results, but the US approach is unique.
The proposal could significantly impact DeFi tokens and overall market stability, marking a potentially transformative moment for the industry.