El Salvador, the U.S. Perkin Law Firm, and Heather Shemilt have suggested a cross-border crypto regulatory sandbox to the SEC as a bid to drive regulatory innovation. The suggestion aims to enable concurrent regulation by U.S. and Salvadoran regulators of small-scale tokenization projects under El Salvador's digital asset regime while offering the SEC real-time data and insights.
The proposal has two pilots: a tokenized real estate marketplace enabling fractional ownership of Salvadoran property and a tokenized small business capital-raising program. Both pilots limit investor exposure to $10,000 and are intended to pilot investor protection, secondary trading, regulatory transparency, and to compare tokenized offerings with U.S. crowdfunding regulation.
This sandbox fits with SEC Commissioner Hester Peirce's agenda and presents the SEC with an unusual opportunity to watch and evolve digital asset regulation from real-world experience derived from El Salvador's full digital asset ecosystem. It has the potential to shape the future U.S. regulatory regime for digital assets.


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