El Salvador Launches Cross-Border Crypto Sandbox with US Law Firm Perkin Law

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

El Salvador's National Commission on Digital Assets (CNAD) has joined forces with US law firm Perkin Law and ex-Goldman Sachs partner Heather Shemilt to propose 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, aims to allow regulators from both nations to collaborate on small-scale digital asset experiments within a controlled environment, offering real-time observations, especially in the tokenization and real estate domains.

The proposal arose in response to SEC Chair Gary Gensler's call for international cooperation in crypto regulation, an appeal he made in March during an interview with the International Monetary Fund (IMF).

In response to Gensler's call for cross-border cooperation, CNAD reached out to the SEC to propose a pilot program that would bring together regulators from both nations. The initiative was met with enthusiasm by SEC Commissioner Hester Peirce, also recognized as "Crypto Mom" for her efforts in advancing crypto innovation.

What Is the Purpose of the Crypto Sandbox?

The “sandbox” is a controlled testing space in which emerging financial technologies and digital assets can be trialed without first deploying them to broader 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 better understand DeFi projects, token classification, and investor protection mechanisms.

Set the stage for future cross-border crypto policy coordination.

Two projects will launch first:

Real Estate Tokenization (US Brokerage) A U.S.-licensed brokerage company will be granted a limited digital asset license by CNAD to launch a real estate tokenization platform in El Salvador.

Small Business Tokenized Equity A U.S. private investment firm will apply for digital asset licenses from relevant U.S. authorities to launch a tokenized equity crowdfunding platform for small and medium-sized enterprises (SMEs).

Toward Global Crypto Governance

This effort is being led by legal professionals Erica Perkin, CNAD Chair Juan Carlos Reyes, and Carmen Elena Ochoa de Medina, 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:

The sandbox fits her vision to a T and could potentially develop a model framework for international digital asset regulation.

El Salvador's crypto innovation continues with the proposal of a cross-border crypto sandbox to the U.S. Securities and Exchange Commission (SEC).

The initiative, spearheaded by El Salvador's National Commission on Digital Assets (CNAD), will see the creation of a small-scale testing environment for emerging crypto technologies.

The proposal follows SEC Chair Gary Gensler's call for greater international cooperation in crypto regulation, a plea he made in March during an interview with the International Monetary Fund (IMF).

In response to Gensler's call for cross-border cooperation, CNAD reached out to the SEC to propose a pilot program that would bring together regulators from both nations to observe and learn from digital asset testing in a controlled setting.

This initiative was met with enthusiasm by SEC Commissioner Hester Peirce, who is recognized for her efforts in advancing crypto innovation.

However, it’s worth noting that the SEC did not immediately accept the proposal during the April 22 meeting of the SEC’s Crypto Task Force.

Instead, the two sides agreed to continue discussions in the coming months, aiming to launch the pilot program by the end of the year.

The initiative will focus on testing new technologies in the tokenization and real estate sectors.

One pilot project will involve a U.S.-licensed brokerage company applying for a limited digital asset license from CNAD to launch a real estate tokenization platform in El Salvador.

The second pilot project will see a U.S. private investment firm applying for digital asset licenses from relevant U.S. authorities to launch a tokenized equity crowdfunding platform for small and medium-sized enterprises (SMEs).

This effort is being led by legal professionals Erica Perkin, CNAD Chair Juan Carlos Reyes, and Carmen Elena Ochoa de Medina, 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:

The sandbox fits her vision to a T and could potentially develop a model framework for international digital asset regulation.