A group of Democratic senators has introduced a bill that could impose sanctions on El Salvador's leadership over its Bitcoin holdings and alleged human rights abuses.
Overview of the Sanctions Bill
The legislation, titled the "El Salvador Accountability Act of 2025" (S. 2058), was brought before the U.S. Senate by Senator Chris Van Hollen, alongside Senators Tim Kaine and Alex Padilla. The bill calls for the U.S. to cut ties with President Nayib Bukele's government, which became the first in the world to adopt Bitcoin as legal tender in 2021. Liberal senators claim Bitcoin in the country is being used in corruption, sanction evasion, and human rights violations.
U.S. Government Obligations Under the New Bill
Under the provisions of "S. 2058," the U.S. Secretary of State, in coordination with the Secretary of the Treasury, will be required to submit a report within 90 days of the bill's enactment. The report will analyze whether President Bukele and his officials have used digital assets for gross corruption and evading U.S. laws.
Criticism and Impacts on U.S.-El Salvador Relations
Lawmakers have raised concerns regarding the government's use of a 'state of exception' law that allows for the temporary suspension of certain civil rights. In April, Democrat Representative Jamie Raskin expressed frustration over continued American aid to El Salvador, questioning the Salvadoran government's handling of an American citizen’s wrongful detention.
The new bill could lead to significant changes in U.S.-El Salvador relations. Ongoing investigations into the government's use of Bitcoin may unveil extensive corruption and evasion of international obligations.
