25-4-2025 – El Salvador’s National Commission of Digital Assets (CNAD) has initiated dialogue with the American Securities and Exchange Commission’s Crypto Task Force, proposing an innovative cross-border regulatory framework.
The centrepiece of these discussions involves a proposed “regulatory sandbox” – a controlled testing environment for cryptocurrency oversight mechanisms. Two modest pilot schemes, each valued under $10,000, showcase the practical applications of this collaborative venture.
The initiative’s first pilot envisions Anglo-American property dealers partnering with Salvadoran digital firms to create tokenised real estate shares. Meanwhile, the second scheme explores novel approaches to capital generation through tokenised equity sales, though specific project details remain under wraps.
A recently surfaced memorandum, dated 22 April, reveals these developments against a backdrop of diplomatic complexity between the two nations, particularly regarding migration policies. The document positions the sandbox initiative as the paramount objective amongst four key priorities.
Notably, El Salvador’s cryptocurrency portfolio has expanded considerably, with Bitcoin holdings now exceeding 6,000 units, marking substantial growth projections for 2025. This development runs parallel to the nation’s heightened focus on regulatory refinement.
The talks, whilst conducted without SEC Commissioners present, drew participation from distinguished figures including digital asset specialist Erica Perkin and former Goldman Sachs executive Heather Shemilt. Though yet to yield formal agreements, these discussions signal growing appetite for international regulatory cooperation.
In a fascinating parallel development, Kyrgyzstan has emerged as “El Salvador 2.0”, garnering attention for its measured approach to cryptocurrency integration. Their resource-driven strategy offers an intriguing counterpoint to El Salvador’s pioneering model.
The proposed partnership presents the SEC with valuable empirical data regarding cross-border digital asset governance. Industry observers suggest this collaboration could prove instrumental in shaping future regulatory frameworks, particularly in emerging markets exploring similar digital transformations.
