SEC Urged to Pursue Full ATS Registration for DeFi Platforms

Plume General Counsel B. Salman Banaei has called on the U.S. Securities and Exchange Commission (SEC) to implement full Alternative Trading System (ATS) registration for platforms utilizing decentralized finance (DeFi) protocols. According to NS3.AI, Banaei made this appeal during his testimony before the House on March 25. He emphasized the need for comprehensive regulation rather than relying primarily on a limited innovation exemption for tokenized trading. The SEC is currently exploring a time-limited pathway for tokenized National Market System (NMS) equities to be traded on-chain. The agency is also in the process of gathering public feedback to develop a more extensive framework for the long-term regulation of these digital assets.