Briefly,
- El Salvador’s National Commission on Digital Assets could allow U.S. companies to experiment with tokenized property in Central America.
- A meeting Monday between the SEC's Crypto Task Force and CNAD focussed on a so-called regulatory sandbox between the countries.
- The SEC leadership indicated earlier this month that it would be open to the idea of a testing ground for regulatory purposes, involving U.S. companies, and specifically tokenized assets.
According to Erica Perkin of Perkin Law Firm, a legal advisor for CNAD and a member of the El Salvador National Commission on Digital Assets (CNAD), U.S. companies may be allowed to experiment with tokenized property in Central America. Decrypt On Thursday,
A meeting on Monday between the U.S. Securities and Exchange Commission (SEC) Crypto Task Force and CNAD focused on a “regulatory sandbox” between the two nations.
The SEC leadership took a stand against the SEC earlier this month. Signal The U.S. government was willing to provide a test ground where firms could learn about regulatory issues. This would include tokenized assets that can be used as securities, bonds or, in this instance, “a smaller-scale project of real estate in El Salvador”.
Perkin explained that this meeting also covered how El Salvador had “attracted players of the highest level,” including stablecoins issuer Tether. It was held as a response to Hester Pettice’s February statement. The preliminary discussion was exciting for Perkin, as the SEC is willing to hear regulators in a small nation.
Perkin noted that the team had worked tirelessly to develop and maintain an ecosystem of digital assets which offers strong consumer protections while still allowing innovation in digital assets. Perkin said that “CNAD has heard the Commissioner Peirce call for a dialog on a trans-border sandbox, and is ready to provide real-world data and use cases which can help Crypto Task Force.”
Perkin revealed that Juan Carlos Reyes is the president of CNAD, as well Heather Shemilt who was formerly a partner with Goldman Sachs. Perkin stated that Carmen Elena Ochoa de Medina was also involved with the initiative.
SEC and CNAD did not immediately respond to a comment request from Decrypt.
Peirce authored in A blog post The Crypto Task Force had been working for months on “considering how to facilitate cross border experimentation at a temporary scale” and “long term approaches”.
Perkin stated that CNAD had made a “generous proposal” on how such a sandbox could be structured, and that, with CNAD approval, the sandbox would “potentially open to U.S. companies.”
Conversations between the SEC and CNAD focused on two scenarios of a pilot crypto program. One involved a platform allowing investors to buy tokenized land shares, while another was “SEC permitted crowdfunding” for smaller companies.
El Salvador has proposed a cross-border sandbox that would “encourage global regulatory harmonization” and “unlock an asset class worth trillions of dollars,” according to the SEC’s filing.
It was made following a meeting that took place between U.S. president Donald Trump and El Salvador’s president, Nayib Bukele, in early this month. They did not talk about their mutual appreciation for Bitcoin The controversy over a Marylander who was deported wrongfully to El Salvador dominated the public’s attention.
El Salvador, on the other hand, has experimented with Bitcoin since years. Bitcoin has been made legal tender and is being studied as an alternative currency. Utilizing energy from volcanoes The mining of the Bitcoin asset is a way to cultivate an image as a destination that attracts Bitcoin enthusiasts.
Since 2021, the country has been stockpiling Bitcoin, reflecting Trump’s Strategic Bitcoin Reserve. You can use tariffs Use Bitcoin to finance Bitcoin purchases. El Salvador currently has $573,000,000 in Bitcoin. The following are some of the most effective ways to increase your ROI: Arkham Intelligence is a platform for crypto analytics.
Bukele is a popular sport in March rejected El Salvador would have to cease buying Bitcoin if the International Monetary Fund imposed conditions for its $1.4 billion loan. The Central American nation still receives Bitcoin in its wallets, even as recent as last Wednesday.
James Rubin is the editor
