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Risch, Menendez Reintroduce Legislation to Mitigate Risks of El Salvador’s Adoption of Bitcoin

WASHINGTON – U.S. Senators Jim Risch (R-Idaho) and Bob Menendez (D-N.J.), ranking member and chairman of the Senate Foreign Relations Committee, yesterday reintroduced the Accountability for Cryptocurrency in El Salvador (ACES) Act, legislation requiring a State Department report on El Salvador’s adoption of Bitcoin and potential impacts on bilateral economic relations and law enforcement cooperation.

“Using cryptocurrency as legal tender could weaken economic and financial stability and empower malign actors,” said Risch. “Given U.S. interest on prosperity and transparency in Central America, we must seek greater clarity on how the adoption of Bitcoin as legal tender may impact El Salvador’s financial and economic stability, as well as El Salvador’s capacity to effectively combat money laundering and illicit finances. I’m proud to reintroduce the ACES Act to do just that.”

The ACES Act would require a State Department report that includes:

  • 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.

The ACES Act was previously introduced in the 117th Congress and passed out of Committee on March 23, 2022. Text of the legislation as reintroduced today can be found here.