The SEC’s Crypto Task Force is investigating cross-border regulation with a collaboration deal with El Salvador. El Salvador’s National Commission of Digital Assets (CNAD) has already established collaborations with a U.S.-based real estate broker and a Salvadoran tokenization firm. Together, they’re pioneering a groundbreaking new initiative. This innovative partnership aims to provide the SEC with meaningful information about the promise of tokenization in particular, as applied to real estate. Moreover, it seeks to improve regulatory policy on digital assets.
Back in October, El Salvador’s National Commission of Digital Assets (CNAD) met with the SEC’s Cryptocurrency Task Force. Although just a small sample, they talked about some very impressive initiatives, which was refreshing. Erica Perkin, a lawyer specializing in digital asset consulting, and Heather Shemilt, a former partner at Goldman Sachs, participated in the meeting.
The SEC’s Crypto Task Force has drawn up a list of top priorities. They intend to address all but half of these items with a comprehensive approach. Aside from staffing, this plan includes the creation and implementation of two pilot programs, with a budget of less than $10,000.
These experimental programs have taken the form of collaborations between a U.S.-based remittance broker and a Salvadoran tokenization startup. These programs provide significant opportunities to test and demonstrate how well firms can raise capital through the sale of tokenized shares. Their end goal, of course, is to have a project ready to go with the money they raise.
This initiative offers the SEC Crypto Task Force a live, real-world case study to evaluate streamlined regulatory approaches for digital assets—an opportunity to observe and refine frameworks that could enhance US market innovation. A key lesson from El Salvador’s experience is the transformative potential of tokenization, particularly in real estate. - SEC’s Crypto Task Force
The roundtable discussions are consistent with Commissioner Hester Peirce’s opening statement when she first announced the creation of the Crypto Task Force. The main effort thus far has been to create an ongoing, permanent “cross-border sandbox.” This will be done through a pilot program with two examples, each funded at $10k or less.
The partnership with El Salvador offers the SEC a unique opportunity to observe and potentially refine its regulatory frameworks for digital assets. So, the SEC analyzes El Salvador’s experience to identify and discover ways for regulators to respond. Their mission is to spur innovation in the U.S. market.
