SEC,El Salvador,Plan,Cross-Border,Crypto,Sandbox,Program

Officials from the US Securities and Exchange Commission’s (SEC) crypto task force engaged in discussions with the El Salvador National Commission on Digital Assets (CNAD) to explore regulatory frameworks and a proposed cross-border sandbox initiative. The meeting, documented in an April 22 memo, involved representatives from El Salvador, Perkin Law Firm, and former Goldman Sachs partner Heather Shemilt. The focus of the discussions was on fostering US-El Salvador collaboration on crypto regulation, a topic of significant interest given the heightened tensions between the two nations over immigration and deportation policies.

The meeting notes indicated that El Salvador’s national commission agreed to work with the SEC to establish a sandbox pilot program, with each scenario capped at $10,000. This program aims to allow US-licensed brokers to obtain a digital asset license in El Salvador and issue “non-securities” tokens in collaboration with local companies. This initiative underscores the growing interest in integrating cryptocurrency into the financial systems of both countries.

Salvadoran President Nayib Bukele has been a prominent figure in the country’s push to adopt cryptocurrency, having announced legislation to recognize Bitcoin (BTC) as legal tender in 2021. Bukele’s meeting with US President Donald Trump on April 14 highlighted the complexities of the relationship between the two nations. The discussion centered on a $6 million deal involving the deportation of immigrants with unclear legal status to prisons in El Salvador, a move that has sparked controversy and legal challenges, including violations of federal judges' orders.

The SEC’s new chair, Paul Atkins, was sworn in shortly after the meeting report was released. Atkins, who succeeded Gary Gensler and acting chair Mark Uyeda, emphasized his commitment to providing a firm regulatory foundation for digital assets during his swearing-in ceremony. This development suggests a continued focus on regulatory clarity and collaboration in the crypto space, potentially deepening ties between the US and El Salvador through additional regulatory partnerships or enhanced deportation policies.