Brazil Crypto Report
Brazil Crypto Report
BCR Podcast #28: Isac Costa Breaks Down the Brazil SEC's New Crypto Asset Guidance

BCR Podcast #28: Isac Costa Breaks Down the Brazil SEC's New Crypto Asset Guidance

We assess what the opinion means for token issuers in Brazil

Ola Pessoal!

Regulatory clarity around digital asset taxonomy and treatment, particularly the question of when a token is and is not a security, has been the Holy Grail of crypto for years now.

Therefore, it’s a big deal any time a securities regulator issues any sort of guidance or opinion on this question.

I invited Isac Costa back to the podcast to discuss the crypto asset guidance issued last week by the Brazilian Securities and Exchange Commission (CVM).

Isac is a technologist, lawyer, professor and a frequently-cited commenter on questions of crypto regulation in Brazil. He is also a former CVM staffer and advisor so has a great understanding of how things work inside the agency.

In this episode we discuss:

  • the core tenets of the guidance - what it does and does not clarify

  • why the CVM chose to release this opinion now

  • the differences between the CVM and the US SEC with regards to how enforcement cases are raised

  • how guidance leaves the door open for “utility” or “network” tokens that don’t promise any specific rights to equity or cash flow but rather participatory rights in a decentralized network

  • what the opinion means for the “fixed-income” tokens being issued by the likes of Mercado Bitcoin and others

  • the outlook for crypto legislation being approved by the Brazilian Congress this year

For more CVM guidance analysis I also recommend taking a look at my newsletter from this last weekend.

If you find this conversation useful, I highly recommend listening to my original podcast with Isac from July where we dive deep into the crypto legislation that is working its way through the Brazilian Congress.

Can also listen on Spotify here!

Have a great day everyone,