US SEC and El Salvador’s CNAD Partner Over Regulatory Sandbox

The United States Securities and Exchange Commission (SEC) has started discussions with El Salvador’s National Commission of Digital Assets (CNAD). According to a recent memo , the SEC wants to create a cross-border regulatory framework for digital assets. This effort shows that the SEC wants to improve its oversight of new blockchain technologies, particularly tokenization. US SEC to Create Regulatory Sandbox This initiative focuses on creating a regulatory sandbox. This safe environment would let both countries test new digital asset models under real-world conditions. It would do this without the usual regulatory restrictions. By testing in this way, regulators can watch, analyze, and understand the risks and benefits of these technologies before formal implementation. The memo outlined two new pilot programs. The first pilot program involves a partnership between a U.S. real estate company and a Salvadoran tokenization firm. This pilot aims to help the US company buy and manage tokenized El Salvador property ownership. The second pilot program will use tokens to raise funds for small businesses. In this case, a US-licensed broker and the CNAD will jointly manage this initiative. The goal is to see how token-based fundraising can help entrepreneurs while ensuring that investors are protected and regulations are followed. Both pilot programs will strategically provide valuable insights for the SEC. This includes a better understanding of how to issue tokens, manage digital assets, the evolving role of broker-dealers, and how to structure digital offerings. SEC Acting Chair Reviews Old Crypto Guidelines Recall that Acting Chair Mark T. Uyeda asked agency staff to review several older staff statements concerning crypto investments. His reason was to look into how securities laws apply to digital assets. Uyeda wants the SEC to rethink its approach to digital assets. He affirmed that some statements under review were written years ago, before digital assets became a significant part of the financial world. Uyeda also pointed to a 2021 staff statement that warned investors about mutual funds holding Bitcoin futures. The SEC said these funds were risky because Bitcoin’s price could swing wildly. However, things have changed. Spot Ethereum and Bitcoin exchange-traded funds (ETFs) are popular and hold billions in assets. As such, Uyeda wants the agency to revisit whether these old concerns still apply. A New Chapter at the SEC Meanwhile, Paul Atkins was sworn in as the 34th chairman of the SEC on April 21. Notably, Atkins now steps back into the regulatory spotlight with a clear mission: to foster capital formation, safeguard investor interests, and enhance market efficiency. Many in the digital assets community have welcomed his appointment, particularly as expectations rise for a more crypto-friendly approach than that taken under Gary Gensler’s tenure. The post US SEC and El Salvador’s CNAD Partner Over Regulatory Sandbox appeared first on TheCoinrise.com .

Source: The Coin Rise