SEC and El Salvador agree on $10,000 pilot for crypto sandbox program

The US Securities and Exchange Commission’s (SEC) crypto task force met with El Salvador’s National Commission on Digital Assets (CNAD) to discuss regulatory collaboration and a proposed cross-border sandbox pilot program, according to an April 22 memo.

The meeting included representatives from El Salvador, the Perkin Law Firm, and former Goldman Sachs partner Heather Shemilt.

The discussions focused on establishing a sandbox capped at $10,000 per scenario, allowing US-licensed brokers to obtain digital asset licenses in El Salvador.

This would enable these brokers to issue “non-securities” tokens in partnership with local Salvadoran companies.

The initiative aims to foster cross-border cooperation on cryptocurrency regulation amid broader political tensions between the US and El Salvador.

Relations have been strained due to US deportations of immigrants to El Salvador, some of which reportedly violated federal court orders.

El Salvador’s President Nayib Bukele has been a central figure in the country’s cryptocurrency adoption since 2021, when Bitcoin was declared legal tender.

Bukele recently met with former US President Donald Trump to discuss a $6 million deal involving the deportations.

It remains unclear whether the Trump administration plans to expand regulatory partnerships with El Salvador alongside immigration policies.

The meeting took place shortly after Paul Atkins was sworn in as the SEC’s new chair.

Atkins emphasised his priority to “provide a firm regulatory foundation for digital assets” during his swearing-in ceremony.