US lawmakers introduce bill to guard against fallout from El Salvador’s Bitcoin law
Several US senators have introduced the Accountability for Cryptocurrency in El Salvador Act, also known as the ACES Act, as “a plan to mitigate potential risks to the U.S. financial system”
The senators argue that El Salvador’s adoption of Bitcoin as legal tender raises concerns about the economic stability and financial integrity of the US trading partner
The El Salvadoran President responded by tweeting, “You have 0 jurisdiction on a sovereign and independent nation.”
US Senators Jim Risch, Bob Menendez and Bill Cassidy have introduced a bill entitled the Accountability for Cryptocurrency in El Salvador Act or ACES Act.
Were the bill signed into law, it would require reporting from El Salvador to the US on the adoption of cryptocurrency as legal tender in the country. For this to happen, the bill would first have to be passed by Congress and signed by the US President.
“This new policy has the potential to weaken US sanctions policy, empowering malign actors like China and organised criminal organisations,” said Senator Risch. “Our bipartisan legislation seeks greater clarity on El Salvador’s policy and requires the administration to mitigate potential risk to the U.S. financial system.” Senator Cassidy added that El Salvador recognising Bitcoin as official currency opens the door for money laundering cartels and undermines US interests.
As he’s done often before, chiding Western powers and institutions like the International Monetary Fund (IMF) on social media, President Bukele responded by tweeting, “We are not your colony, your back yard or your front yard. Stay out of our internal affairs. Don’t try to control something you can’t control.”