El Salvador is proposing a regulated crypto sandbox model to the U.S. SEC, offering a testbed for digital asset pilots with investment caps of $10,000 per use case, according to an April 22 meeting summary.

The SEC’s Crypto Task Force met with CNAD, Perkin Law Firm, and retired Goldman Sachs executive Heather Shemilt to explore the idea of joint cross-border token experiments.

Live Experiments Target Property and Capital Markets

The sandbox model proposes two real-world use cases: a property tokenization pilot and a token-based capital raise, both involving U.S.-licensed brokers and Salvadoran token firms.

The $10,000 cap per pilot would allow minimal exposure while gathering real-time regulatory and operational data for the SEC to evaluate.

The initiative ties into policy efforts by Commissioner Hester Peirce, who has long called for alternative offering paths and clarity for token classification and broker-dealer participation.

Bitcoin Presence in El Salvador Shrinks While Token Policy Expands

Despite continued investment in crypto-focused infrastructure, Bitcoin service activity in El Salvador has plummeted. A Central Reserve Bank report shows only 20 active firms remain from the original 181 registered.

The government, however, remains committed to digital innovation—maintaining 6,100+ BTC, supporting tech-forward ventures like AI projects, and developing a Bitcoin City Airport.

Supporters of the sandbox argue that El Salvador’s policy frameworks offer a unique opportunity for the U.S. to observe digital asset regulation in action and apply those findings to future rulemaking.