US House Bill Seeks To Study El Salvador’s ‘Careless Gamble’ on Bitcoin
US Reps. Norma Torres and Rick Crawford have introduced a companion bill in the House over El Salvador’s adoption of bitcoin
US Capitol Building | Credit: Shutterstock
key takeaways
- The US House bill directs the State Department to produce an analysis of El Salvador’s Bitcoin Law
- The bill also seeks to analyze risks relating to cybersecurity, global economic stability and democratic governance
Two members of Congress introduced a companion bill to the House of Representatives on Monday seeking to “mitigate the risks” posed to the US by El Salvador’s adoption of bitcoin as legal tender last year.
The Accountability for Cryptocurrency in El Salvador (ACES) bill, which follows similar legislation introduced to the Senate in February, directs the State Department to produce an analysis of El Salvador’s Bitcoin Law.
Following the Senate bill, El Salvador’s President Nayib Bukele lashed out, labelling three senators “boomers” and directed them to to stay out of his country’s “internal affairs.”
“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,” Bukele tweeted at the time.
El Salvador officially recognized bitcoin as legal tender on Sept. 7 following a passage of the country’s Bitcoin Law through the Legislative Assembly back in June 2021. The move was praised by crypto proponents around the world while being viewed as a threat to financial stability by others, including the International Monetary Fund.
Introduced to the House floor by representatives Norma Torres, D-Calif., and Rick Crawford, R-Ark., the bill also seeks to analyze risks relating to cybersecurity, global economic stability and democratic governance posed by the Latin American nation’s decision.
A plan to mitigate potential risks to the American financial system will also be drawn up should the bill garner enough votes to pass through the legislature.
“El Salvador is an independent democracy and we respect its right to self-govern but the United States must have a plan in place to protect our financial systems from the risks of this decision, which appears to be a careless gamble rather than a thoughtful embrace of innovation,” Torres said in a statement.
The ACES bills will need to pass through both the House and Senate before it is approved into law by President Joe Biden or vetoed entirely.
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