El Salvador is pitching a small-scale, cross-border digital asset sandbox to the U.S. Securities and Exchange Commission (SEC), according to a memorandum summarizing an April 22 meeting with the SEC’s Crypto Task Force.
The meeting involved El Salvador’s National Commission on Digital Assets (CNAD), Perkin Law Firm, and retired Goldman Sachs partner Heather Shemilt, proposing a pilot model designed to inform U.S. regulatory frameworks around tokenization.
Real Estate and Capital Pilots Capped at $10K
The proposal outlines two test programs using El Salvador’s digital infrastructure. One pilot would focus on tokenizing real estate, while the second would explore capital market fundraising using tokens.
Both scenarios would involve a U.S.-licensed broker and Salvadoran tokenization firms, with each project capped at $10,000 to reduce risk.
The sandbox aims to produce real-world data for the SEC regarding token classification, custody, and compliance—without requiring full securities treatment. The concept aligns with priorities laid out by SEC Commissioner Hester Peirce, who has long advocated for regulatory clarity in digital assets.
El Salvador Pushes Regulatory Innovation Despite Domestic Bitcoin Decline
Supporters argue that El Salvador’s regulatory model offers hands-on insights into how tokenized finance can function across borders.
The CNAD’s existing frameworks, including risk matrices and asset tokenization systems, are highlighted as useful reference points for U.S. experimentation.
However, recent data from the Central Reserve Bank shows that only 20 of 181 registered Bitcoin service providers in El Salvador remain active. This dramatic shrinkage raises concerns about the practical adoption of Bitcoin, even as the government maintains 6,100 BTC holdings and pursues broader goals like AI development and the Bitcoin City Airport project.
