Plume's General Counsel Testifies at U.S. House Hearing, Recommends Including Tokenized Securities in Existing Regulations

Techub News, Salman Banaei, General Counsel of Plume Network, stated at a hearing of the U.S. House Financial Services Committee that tokenized securities should not be considered an entirely new asset class, nor is there a need to establish entirely new rules or exemptions for them. He argued that regulation should be driven by the economic nature and risks of financial products, not the technology used. Therefore, targeted amendments to existing regulations should be made to incorporate the realities of new technologies into mature regulatory frameworks.

Salman also stated that utilizing public blockchains and on-chain compliance tools can significantly enhance market transparency and reduce costs while maintaining or even exceeding existing regulatory standards. He warned that if the U.S. experiences regulatory lag due to policy uncertainty, it risks losing its leadership position in the digital transformation of global capital markets, allowing this strategic opportunity to shift to foreign competitors with different geopolitical objectives.