El Salvador Seeks US SEC Partnership on Cross-Border Crypto Sandbox

El Salvador, in collaboration with the U.S. Perkin Law Firm and Heather Shemilt, has unveiled a proposal for a cross-border crypto regulatory sandbox aimed at driving innovation in the digital asset space.

The initiative was revealed during the SEC’s Crypto Task Force meeting on April 22.

The proposal seeks to build regulatory development by allowing international collaboration and using real-world data to shape U.S. crypto regulations. The SEC would work alongside El Salvador’s National Digital Assets Commission (CNAD) to develop a framework for regulating digital assets.

The U.S. SEC Crypto Task Force met with Perkin Law Firm, El Salvador’s CNAD, and former Goldman Sachs partner Heather Shemilt to discuss a proposed cross-border regulatory sandbox. The proposal includes two pilot scenarios: (1) a U.S.-licensed broker obtaining a digital asset…

— Wu Blockchain (@WuBlockchain) April 23, 2025

El Salvador and U.S. Experts Craft Crypto Sandbox for Real Estate and SME Funding

The El Salvador’s proposal includes two pilot programs. The first features a U.S.-licensed broker acquiring a limited-scope digital asset license from CNAD to launch a real estate tokenization platform. 

With this program, investors could purchase fractional shares in Salvadoran properties, with investments capped at $10,000 per person. This project aims to provide insights into investor protection, secondary trading of digital assets, and classification of tokens as “non-securities.”

The second pilot centers on tokenized capital raising. A small Salvadoran business would raise funds via tokenized equity, also within the $10,000 limit. The objective is to assess how tokenized offerings stack up against U.S. crowdfunding rules and potentially influence future SEC guidance.

Notably, the team behind the whole initiative includes blockchain expert Erica Perkin, CNAD president Juan Carlos Reyes, and former financial regulator Carmen Elena Ochoa de Medina. Additionally, a U.S. broker will be selected with SEC input to ensure compliance with U.S. standards.

This sandbox proposal aligns with SEC Commissioner Hester Peirce’s crypto policy priorities, including cross-border collaboration, broker-dealer regulation, and clarity on token offerings.

Despite IMF Pressure, El Salvador Doubles Down on Bitcoin

Despite pressure from the International Monetary Fund (IMF), El Salvador remains steadfast in its crypto commitment, with President Nayib Bukele continuing daily Bitcoin (BTC) purchases. 

Since March 1, the country has added 13 Bitcoins to its treasury, now totaling over 6,105 BTC worth more than $527 million at current market prices.

The acquisition pace briefly accelerated on March 3, when 5 BTC were bought in a single day, defying IMF requests to halt public sector accumulation. 

This came shortly after El Salvador secured a $1.4 billion IMF loan deal in December 2024, which required the nation to roll back key parts of its Bitcoin strategy, including removing BTC’s status as legal tender and limiting its use in government institutions.

In January 2025, El Salvador’s Congress complied by amending Bitcoin laws in a 55-2 vote. However, the government’s Bitcoin purchases have not stopped. President Bukele reaffirmed his stance, saying, “If it didn’t stop when the world ostracized us… it won’t stop now, and it won’t stop in the future.”

“This all stops in April.” “This all stops in June.” “This all stops in December.”

No, it’s not stopping.

If it didn’t stop when the world ostracized us and most “bitcoiners” abandoned us, it won’t stop now, and it won’t stop in the future.

Proof of work > proof of whining https://t.co/9pC0PoY3YQ

— Nayib Bukele (@nayibbukele) March 4, 2025

This unwavering approach has attracted several crypto firms to relocate to the country, even as El Salvador seeks a regulatory partnership with the US SEC to establish a cross-border crypto sandbox.