US House of Representatives to Consider Legislation on El Salvador’s Bitcoin Adoption

The bi-partisan Accountability for Cryptocurrency in El Salvador (ACES) Act mirrors legislation that advanced out of a Senate committee last month.

AccessTimeIconApr 5, 2022 at 2:37 p.m. UTC
Updated Apr 27, 2022 at 7:13 p.m. UTC

Andrés Engler is a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.

U.S. representatives Norma J. Torres (D-Calif.) and Rick Crawford (R-Ark.) on Monday introduced the Accountability for Cryptocurrency in El Salvador (ACES) Act, looking to mitigate risks to the U.S. financial system from El Salvador's adoption of bitcoin (BTC) as legal tender.

  • “El Salvador’s adoption of bitcoin is not a thoughtful embrace of innovation, but a careless gamble that is destabilizing the country,” Torres tweeted Monday.
  • According to a release published by Torres, “the legislation directs the State Department to produce an analysis of El Salvador’s adoption of bitcoin as legal tender and the risks for cybersecurity, economic stability and democratic governance in El Salvador, and create a plan to mitigate potential risks to the U.S. financial system.”
  • For reference on "risks," El Salvador's GDP is roughly $25 billion versus U.S. GDP of $21 trillion.
  • The bill functions as a companion to the Senate bill introduced by senators James Risch (R-Idaho), Bob Menendez (D-N.J.) and Bill Cassidy (R-La.) on Feb. 16. That legislation advanced out of committee on March 23, putting it on path to be voted on by the full Senate.
  • At the time, El Salvador's president, Nayib Bukele, expressed his disagreement with the bill: “Never in my wildest dreams would I have thought that the U.S. [government] would be afraid of what we are doing here,” he tweeted.


DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Andrés Engler is a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.

CoinDesk - Unknown

Andrés Engler is a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.

Trending

1
CoinDesk - Unknown
El Salvador Purchases 80 Additional Bitcoin at $19K, President Bukele Says

The last purchase by the Central American country had been in May.

CoinDesk - Unknown
2
CoinDesk - Unknown
VanEck Files New Application for Spot Bitcoin ETF

The application comes about eight months after the SEC rejected the investment firm’s last application.

CoinDesk - Unknown
3
CoinDesk - Unknown
First Mover Asia: Speculating on Tokenized Carbon Offsets Won't Help Climate Crisis, Says Consultant; BTC Falls Under $19K Amid Wider Crypto Woes

A significant number of carbon credits are from projects 8-10 years old; Ether and other major altcoins plummet.

CoinDesk - Unknown
4
CoinDesk - Unknown
Crypto Lender Celsius Network Exploring Options to ‘Preserve and Protect’ Assets

Celsius Network is consulting with experts to try to reduce the fallout from its mid-June swoon.

CoinDesk - Unknown