Crypto Sandbox Proposal Could Reshape Global Regulation: El Salvador & US Collaboration
i n a historic step towards international regulation of crypto, El Salvador's National Commission on Digital Assets (CNAD) has teamed up with US law firm Perkin Law and ex-Goldman Sachs partner Heather Shemilt to put forward a cross-border crypto sandbox to the US Securities and Exchange Commission (SEC).
The proposal, made at the SEC's Crypto Task Force meeting on April 22, seeks to enable regulators from both nations to work together on small-scale digital asset experiments in a controlled environment, providing real-time insights, particularly in the tokenization and real estate spaces.
What Is the Purpose of the Crypto Sandbox?
The "sandbox" is a controlled testing space in which emerging financial technologies and digital assets may be tested without first exposing them to wider markets. The El Salvador-USA sandbox will:
Facilitate the provision of real-time information to the SEC on digital asset transactions in El Salvador.
Enable regulators to have a better grasp of DeFi projects, token classification, and investor protection mechanisms.
Pave the way for future cross-border crypto policy coordination.
Two Pilot Projects to Launch First
Real Estate Tokenization (US Brokerage)
A U.S.-licensed brokerage company will be issued a limited digital asset license by CNAD to open a real estate tokenization platform in El Salvador.
- Investors may purchase fractional property ownership.
- Max exposure: $10,000 per investor.
- Priority: Secondary trading, investor protection, and defining certain tokens as non-securities.
Small Business Tokenized Equity
- Small El Salvadoran businesses will access funds through tokenized equity offerings.
- Investor limit: $10,000
- Will be modeled after US crowdfunding regulations.
- Could influence future SEC protocols.
Toward Global Crypto Governance
This effort is led by legal professionals Erica Perkin, CNAD Chair Juan Carlos Reyes, and Carmen Elena Ochoa de Medina, who is a retired regulator. SEC Commissioner Hester Peirce—also known as "Crypto Mom" for her advocacy for crypto innovation—has highlighted five priorities that this sandbox addresses directly:
- Cross-border cooperation
- Regulation of brokers
- Standards for custody
- Clarification for token offerings
- Technology-neutral legislation
The sandbox fits her vision to a T and could potentially develop a model framework for international digital asset regulation.
Also Read: Neway Crypto Gains Momentum, But Is It Safe to Invest?
El Salvador's Crypto Innovation Drive
El Salvador continues to establish itself as a global crypto innovation center, having earlier made headlines for announcing the world's first Bitcoin City and adopting Bitcoin as legal tender. The sandbox initiative enhances its leadership in blockchain testing and regulatory innovation.
