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

article-image

US Capitol Building | Credit: Shutterstock

share

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.


Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.


Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.


Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.


Tags

upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Sequencers: The Key to The Rollup Investment Thesis

Research

Sequencers are one of the most explicit mechanisms in crypto for creating sustainable DAO-controlled revenue.

/

article-image

A rough start to Tuesday for Coinbase — its stock tanked during premarket hours in response to a sweeping SEC lawsuit

article-image

The SEC takes on the two biggest players in crypto within 24 hours

article-image

The SEC just sued Binance over alleged securities violations — now, the agency is coming for top US crypto exchange Coinbase

article-image

Binance’s ability to handle large outflows is once again tested as the market reckons with a fresh set of SEC allegations

article-image

Cboe Digital has CFTC permission to provide clearing services for margin trade on crypto futures at a time when regulators are closing in

article-image

The former part owner of the Minnesota Vikings misled a number of banks to process hundreds of millions of dollars of illicit crypto transactions