US House Bill To Offset El Salvador’s BTC Adoption

Two US House members have proposed a new bill in order to ‘mitigate the risks’ of El Salvador’s adoption of Bitcoin as legal currency. 

El Salvador’s Decision Still Incites US Legislations

The bill was presented by Congresswoman Norma J. Torres (D-CA), Chair of the Central America Caucus, and Congressman Rick Crawford (R-AR), Ranking Member of the House Permanent Select Committee on Intelligence’s Subcommittee on Counterterrorism, Counterintelligence, and Counterproliferation. The bipartisan House bill proposes legislation for the Accountability of Cryptocurrency in El Salvador (ACES) Act to minimize the risks posed to the United States treasury due to El Salvador’s monumental decision. 

Financial Institutions Question BTC Adoption

Congresswoman Torres addressed the concerns over El Salvador’s BTC adoption, stating,

“Global financial institutions have studied and detailed the numerous risks of El Salvador’s adoption of Bitcoin, and the international community acknowledges the potential danger. 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.”

Many international bodies have openly spoken out against El Salvador’s decision to adopt BTC as legal tender. Most notably, the International Monetary Fund (IMF) had referred to this decision as a monumental risk to financial stability and consumer protection and refused to lend to El Salvador. 

House Bill Follows Senate Bill

The bill was introduced as companion legislation to last month’s Senate bill proposed by US Senators Jim Risch (R-Idaho), Bob Menendez (D-N.J.), and Bill Cassidy (R-La.). El Salvador’s President Nayib Bukele had hit back at these senators, addressing them as ‘boomers,’ referencing their lack of nuanced understanding of the industry. The legislation of the House bill deems that the State Department will have to study the BTC adoption in El Salvador, focusing on cybersecurity risks, repercussions on economic stability, and the effect on democracy in the Central American country. Additionally, the bill also directs the formulation of a plan to mitigate the potential risks of the new policy on the US financial system. 

Representative Crawford commented on the bill and its role in the current crypto-heavy market, stating, 

“The rise in popularity of cryptocurrencies such as Bitcoin creates questions and a necessary review of regulation and consumer protection which the U.S. federal government should be involved in…It is our job as policymakers to better understand the potential effects of the adoption of Bitcoin as legal currency in El Salvador and what the U.S. can learn going forward.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.