‘This is very respected,’ said El Salvador Top Crypto regulator at the US SEC Meeting
El Salvador’s Comisión Nacional de Activos Digaales (CNAD), the agency in charge of regulating digital assets in Central American Nation, seeks to establish a cross-border regulatory sandbox with the US Securities and Exchange Commission (SEC).
“We want to create international collaboration,” Juan Carlos Reyes, President of CNAD, told CoinDesk in an interview. “Our biggest message is that digital assets do not have any geographic barriers. Working with regulators should not have international barriers.”
El Salvador is in a unique situation in which it does not boast of strong financial institutions, or even an existing ecosystem of the developers, when President Nayib Buklele made a bitcoin legal tender in 2021. This means that CNAD has started a blank slate when it introduces a Crypto regulatory framework.
Almost two years passed after Reyes got the agency, El Salvador’s advanced framework of regulation are incentive to giant cryptos such as Tether, Bitfinex and Binance to open the shop in the country.
The idea, Reyes said, is that for US SEC to now use El Salvador as a live, real-world case study to assess the streamlined regulatory techniques for digital properties-in other words, for the SEC to learn from El Salvador’s experience as it changes its own regulation of a post-genler world.
The Pilot program proposed by CNAD involves a variety of situations: a traditional financial broker license that obtains a digital license under the CNAD regulations, and the development of two small-to -kenization offers facilitated by a CNAD-licensed company. Each scenario will be caught at $ 10,000.
These initiatives will support some of the goals laid down by SEC Commissioner Hester Peirce in February, when he write That the SEC Crypto Task Force, which he now leads, will take a different approach to crypto regulation from it.
“The CNAD (Pierce’s document) really looked at that with a critical eye on how we could help,” Erica Perkin said, owned by the Perkin law firm and a member of the CNAD counselor, to CoinDesk. “Here we are. There is data (the SEC) can collect. It’s hard to collect in the US … We have built a plot that is worthless to work on the exact issues that the SEC looks at, and we are here to help and collect information on how we can do that.”
The cnad Met at the SEC’s Crypto Task Force on April 22 to discuss the initiative. The meeting is developing, according to Reyes and Perkin. “They asked good questions,” Perkin said. “It’s in a phase of information gathering. They are engaged and open to discussion.”
Reyes has already signed regulatory cooperation agreements in countries such as Argentina and Paraguay. In his view, the SEC seems to be ahead of the curve when it comes to understanding the regulation of digital property, while regulators in other constituents tend to see crypto regulation from a traditional financial perspective.
“The quality of the people who make up the SEC Crypto Task Force is a bit amazing. They get it. They understand the technology,” Reyes said. “We were able to have discussions that were at the point about what it was necessary to adjust the technology … it was refreshing.”
