SEC Told to Target Vault Activities, Not Protocols

Plume Network, an Ethereum Layer 2 company focused on regulated real-world assets, has proposed to the U.S. Securities and Exchange Commission (SEC) that regulatory focus should shift from crypto vault protocols to specific activities within a vault.

The proposal was made during a September 22 meeting between SEC Crypto Task Force staff and Plume Network representatives.

Plume divided the vault ecosystem into four roles: protocol developer, curator, administrator, and token issuer. It argued that regulatory nexus should primarily sit with the curator and vault token issuer when applicable, rather than automatically extending to the protocol developer or administrator.