SEC Crypto Regulatory Team Discusses International Regulations With El Salvador on Digital Assets
Today, reps from El Salvador's Digital Asset Commission (CNAD) sat down with the SEC's Crypto Task Force, hashin' out a plan for a cross-border "regulatory playground" for cryptocurrency.
This scheme features two pilot programs, each costing less than $10k, where a Stateside broker hooks up with a Salvadoran tokenization firm. The aim is to deliver insights on the Task Force's critical regulatory concerns.
El Salvador teamin' up with the SEC?
According to the SEC's meeting log, published on their site, they and CNAD discussed possible partnerships for El Salvador, aligning with Commissioner Hester Peirce's initial statement announcin' the Crypto Task Force.
Out of four main objectives, the "cross-border playground" ranked first.
"This move gives the SEC Crypto Task Force a live, real-world test case to assess simplified regulatory schemes for digital assets, an opportunity to observe and fine-tune frameworks that could spur US market innovation. El Salvador's experience with tokenization, especially in real estate, offers a key lesson," it stated.
This playground will take shape as a pilot program with two scenarios, each with a $10k or less price tag.
In Scenario 1, a Yank-based real estate broker settles with a Salvadoran tokenization firm, enabling investors to acquire tokenized shares in a property.
Scenario 2 checks out these firms' abilities to raise capital via tokenized shares, using the funds to launch a project. No project is specified here, but Scenario 2 steers clear of real estate.
Both these gigs will offer the SEC valuable data on joint endeavors in El Salvador.
Joinin' them were digital asset lawyer Erica Perkin and Heather Shemilt, a former Goldman Sachs partner.
The document hints at discussions about the proposals but suggests no binding agreement has been reached yet.
The Task Force only sent some of its team to this shindig; no Commissioners were present. But this partnership could offer the SEC heaps of insightful intel.
This plan provides a budget-friendly way to gather hard info on half the Task Force's top priorities, seemin' like a valuabe chance.
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- The Digital Asset Commission (CNAD) from El Salvador has been collaborating with the SEC's Crypto Task Force to establish a cross-border "regulatory playground" for cryptocurrency.
- This partnership, as stated in the SEC's meeting log, aims to provide insights into the Task Force's critical regulatory concerns, particularly in simplified regulatory schemes for digital assets.
- The partnership will involve two pilot programs, each costing less than $10k, where a US broker will work with a Salvadoran tokenization firm to explore tokenization in real estate (Scenario 1) and capital raising via tokenized shares (Scenario 2).
- The SEC will gather valuable data from these collaborations to observe and fine-tune regulatory frameworks that could spur US market innovation, given El Salvador's experience with tokenization.
- Erica Perkin, a digital asset lawyer, and Heather Shemilt, a former Goldman Sachs partner, were also present during the discussions, suggesting a broad range of expertise involved in the exchange.
- The partnership is a budget-friendly approach to gather hard facts on half of the Task Force's top priorities, offering a valuable opportunity for the SEC to explore regulatory aspects of digital finance and technology.
