El Salvador Proposes Cross-Border Regulatory Sandbox with U.S. SEC
El Salvador's Comisión Nacional de Activos Digitales (CNAD) aims to create a cross-border regulatory sandbox with the U.S. Securities and Exchange Commission (SEC). The initiative seeks to enhance international collaboration on digital asset regulation.
- CNAD President Juan Carlos Reyes emphasizes that digital assets transcend geographical boundaries.
- El Salvador has developed a tailored regulatory framework for crypto since making bitcoin legal tender in 2021, attracting firms like Tether, Bitfinex, and Binance.
- The proposed pilot program includes scenarios for U.S.-licensed brokers to obtain CNAD digital asset licenses and small-scale tokenization offerings capped at $10,000.
- This initiative aligns with SEC Commissioner Hester Peirce's new approach to crypto regulation, focusing on data collection and real-world case studies.
- Discussions between CNAD and the SEC’s Crypto Task Force have been constructive, with both parties engaged in understanding regulatory needs.
- Reyes has signed cooperation agreements with Argentina and Paraguay, indicating a proactive approach to digital asset regulation.
Reyes commended the SEC Crypto Task Force for their understanding of technology and the regulatory landscape.