A new cross-border crypto sandbox is being proposed by El Salvador, with a pitch made to the U.S. SEC’s Crypto Task Force during an April 22 meeting. The plan would allow U.S. brokers and Salvadoran firms to conduct live tokenization pilots under capped conditions.
Representatives from El Salvador’s CNAD, Perkin Law Firm, and ex-Goldman Sachs partner Heather Shemilt attended the meeting to present the joint proposal.
Token Pilots Target Real Estate and Fundraising
Two test use cases were outlined: one to tokenize real estate assets and another for tokenized capital raises. Each pilot would involve less than $10,000, ensuring limited financial risk while still providing actionable insights.
A U.S.-registered broker would coordinate with local Salvadoran companies to execute both scenarios. The pilots aim to help the SEC better understand custody, compliance, and token use within a real-world regulatory context.
The sandbox initiative aligns with earlier suggestions from SEC Commissioner Hester Peirce, who advocates for trial programs to evaluate alternative token models.
Bitcoin Sector Shrinks in El Salvador Amid Bold Vision
While El Salvador continues its push into tokenized finance and blockchain governance, Bitcoin activity has sharply declined within its borders.
Out of 181 firms initially registered to offer Bitcoin services, only 20 remain operational, according to the Central Reserve Bank. The dramatic drop has fueled skepticism over the effectiveness of El Salvador’s legal tender approach to Bitcoin.
Nonetheless, the government continues to invest in long-term projects, including AI partnerships and the construction of a Bitcoin City Airport, while holding over 6,100 BTC in reserves.
