U.S. Senators Propose Bill Targeting Bukele’s Bitcoin Use in El Salvador

HKAN | Jul 9

A group of Democratic senators—Chris Van Hollen (D‑MD), Tim Kaine (D‑VA), and Alex Padilla (D‑CA)—has introduced the El Salvador Accountability Act of 2025 (S. 2058). The legislation would require the U.S. Secretary of State to produce a detailed 90-day report on El Salvador’s Bitcoin policies, including:

 

Government spending on Bitcoin

 

Identification of public wallet addresses and exchanges used

 

Names of individuals with access to crypto assets

 

Analysis of whether crypto is being used to bypass sanctions or facilitate corruption  

 

 

The bill also allows for visa restrictions, asset freezes, and opposition to future U.S. financial aid if misuse is confirmed .

 

 

Background & Motivations

El Salvador was the first country to adopt Bitcoin as legal tender in 2021, amassing over 6,200 BTC in reserves (worth around $678 million) . While President Nayib Bukele has defended the strategy—labeling critics “salty”—the bill reflects growing U.S. concerns over corruption, accountability, and financial stability .

 

 

What the Bill Would Do

Mandate reporting and transparency around crypto assets used by the El Salvador government

 

Impose sanctions if Bitcoin is used to evade international rules or as corrupt leverage

 

Restrict U.S. government engagement or funding if red flags are detected  

 

 

 

Implications for Crypto Policy & Diplomacy

Highlights the U.S. Senate's interest in crypto policy as foreign policy

 

Might deter other nations with national crypto strategies

 

Signals increased regulatory pressure on crypto tools used by sovereign states

 

 

Final Take

The El Salvador Accountability Act of 2025 puts global attention back on how governments use Bitcoin. If passed, the bill could reshape how national crypto strategies are evaluated under international norms.