SEC Crypto Task Force and El Salvador Discuss Cross-Border Regulatory Sandbox

The U.S. Securities and Exchange Commission’s Crypto Task Force engaged in high-level talks with El Salvador’s National Commission on Digital Assets this week, marking a significant step toward cross-border cryptocurrency regulation. The discussions centered on a proposed sandbox pilot program, with individual test scenarios limited to $10,000—a cautious yet pragmatic approach to fostering innovation while mitigating risk. The initiative echoes Commissioner Hester Peirce’s February remarks advocating for adaptable crypto frameworks. Key participants included former Goldman Sachs partner Heather Shemilt and representatives from Perkin Law firm, all working to establish a collaborative testing ground for digital assets. Regulatory sandboxes are gaining traction globally as jurisdictions seek to balance oversight with technological progress. El Salvador’s involvement underscores its continued push to position itself as a crypto hub, despite earlier controversies surrounding Bitcoin’s adoption as legal tender. The SEC’s engagement suggests a gradual shift from outright skepticism to structured experimentation—a move that could set precedents for international regulatory coordination.