Policy, El Salvador, SEC, Hester Peirce, Cnad, News El Salvador’s CNAD met up with the SEC’s Crypto Task Force on April 22.
El Salvador’s Comisión Nacional de Activos Digitales (CNAD), the company accountable for regulating digital belongings within the Central American nation, is looking for to ascertain a cross-border regulatory sandbox with the U.S. Securities and Exchange Commission (SEC).
“We want to create international collaboration,” Juan Carlos Reyes, president of the CNAD, informed CoinDesk in an interview. “Our biggest message is that digital assets don’t have any geographical barriers. Collaboration with regulators should not have international barriers either.”
El Salvador is in a novel scenario in that it didn’t boast of sturdy monetary establishments, and even of an present ecosystem of builders, when President Nayib Bukele made bitcoin authorized tender in 2021. That means the CNAD was capable of begin with a clean slate when it launched a regulatory framework tailor-made to crypto.
Almost two years later after Reyes took over the company, El Salvador’s advanced regulatory framework has incentivized crypto giants corresponding to Tether, Bitfinex and Binance to open store within the nation.
The thought, Reyes mentioned, is for the U.S. SEC to now use El Salvador as a reside, real-world case research to judge streamlined regulatory approaches for digital belongings — in different phrases, for the SEC to be taught from El Salvador’s expertise because it revamps its personal regulatory framework in a post-Gensler world.
The pilot program proposed by the CNAD entails totally different eventualities: a U.S.-licensed conventional finance dealer acquiring a digital asset license below CNAD laws, and the event of two small-scale tokenization choices facilitated by a CNAD-licensed tokenization firm. Each state of affairs can be capped at $10,000.
These initiatives would assist a few of the goals laid out by SEC Commissioner Hester Peirce in February, when she wrote that the SEC Crypto Task Force, which she now leads, would take a really totally different method in the direction of crypto regulation from right here on out.
“CNAD really looked at [Pierce’s document] with a critical eye as to how we can help,” Erica Perkin, proprietor of The Perkin Law Firm and a member of CNAD’s advisory group, informed CoinDesk. “We’re here. There’s data [the SEC] might want to collect. It’s difficult to collect in the U.S. … We’ve built a framework that’s nimble enough to work on the exact issues that the SEC is looking at, and we’re here to help and collect information on how we can best do that.”
The CNAD met with the SEC’s Crypto Task Force on April 22 to debate the initiative. The assembly was constructive, in line with Reyes and Perkin. “They asked good questions,” Perkin mentioned. “They’re in an information-gathering phase. They were engaged and open to discussion.”
Reyes has already signed regulatory cooperation agreements with nations corresponding to Argentina and Paraguay. In his view, the SEC appears to be forward of the curve in relation to understanding the regulatory wants of digital belongings, whereas regulators in different jurisdictions have tended to see crypto regulation from a standard finance perspective.
“The quality of people that make up the SEC Crypto Task Force is quite impressive. They get it. They understand the technology,” Reyes mentioned. “We were able to have discussions that were on point about what’s needed in order to regulate the technology… It was very refreshing.”
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