US Senate Bill Targets Bukele’s Bitcoin Strategy With Massive Sanctions Plan

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A group of Senate Democrats, with all the gusto of a trio of overzealous watchdogs, has introduced a bill that not only threatens to blacklist El Salvador’s president, Nayib Bukele, and his entourage, but also mandates a forensic investigation of El Salvador’s audacious Bitcoin strategy. The bill, introduced on June 12th by Senators Chris Van Hollen (D-Md.), Tim Kaine (D-Va.), and Alex Padilla (D-Calif.), is now sitting in the Senate Foreign Relations Committee, awaiting its fate—likely one of epic proportions. Who knew Bitcoin could ignite so much passion?

Dems Target El Salvador’s Bitcoin Strategy

The bill, if passed, would invoke full economic blockade powers under the International Emergency Economic Powers Act—because why not? It would freeze the assets of thirteen Salvadoran officials, including Bukele, Vice President Félix Ulloa, and the president of the Central Reserve Bank. Visas, too, would be revoked. And just for good measure, the US directors at the World Bank and IMF would be compelled to vote against new loans to El Salvador, with direct US assistance also being cut off. A fair bit of “fun” for all involved, right?

Now, the real spicy bit of this bill is Section 5—this is where Bitcoin makes its dramatic appearance. Within 90 days of the bill’s enactment, the Secretary of State, in consultation with the Treasury, must provide a “comprehensive” report on Bukele’s use of cryptocurrency. They want to know if it’s being used for corruption, evading sanctions, or some other unsavory activity. They’ll also want to see wallet addresses, exchange counterparties, and even an estimate of El Salvador’s Bitcoin stash. (That’s a lot of Bitcoin for one country…)

This idea of scrutinizing Bitcoin began with the bipartisan Accountability for Cryptocurrency in El Salvador (ACES) Act of 2022, which first suggested a risk assessment of Bukele’s original 2021 Bitcoin Law. In a quiet move earlier this year, Bukele’s government removed Bitcoin’s legal-tender status—part of an IMF rescue deal—though the digital currency still finds itself accepted for payments and resides on the national treasury’s balance sheet. A move that screams, “We like Bitcoin, but let’s play it cool.”

But the Democrats say this bill is all about human rights. “Under President Bukele, tens of thousands of Salvadorans and even US residents are locked in megaprisons without due process,” said Tim Kaine. Chris Van Hollen added that Bukele is using US taxpayer money to imprison people in a scheme to violate their constitutional rights. Padilla went all out, calling it “abhorrent” and insisting that economic penalties are “necessary.” Because, of course, the bill’s Bitcoin provisions are not just about the crypto world, but the growing fear that El Salvador could use its dollarized economy to circumvent sanctions.

And how did Bukele respond to this charming proposal? With all the humor of a meme-loving president, he posted on X: “HAHAHAHAHAHAHA the Dems are just salty…” And there you have it, folks. The man knows how to roast a political move with the precision of a stand-up comedian.

As for the technicalities, S. 2058 invokes §502B of the Foreign Assistance Act. This allows any committee member to force the bill to the floor if the State Department doesn’t submit its reports. And trust the bill’s sponsors—they’re prepared to use this obscure privilege like it’s their favorite power move. Republicans, however, have yet to show their cards, and the House remains an open question. Drama, anyone?

If this bill actually gets through, the White House would have ten days to list the sanctioned individuals and 90 days to deliver the report. Oh, and sanctions wouldn’t be lifted for at least four years—unless, of course, El Salvador stops its mass detentions and Bitcoin-enabled sanctions evasion. No pressure, right?

And for those interested in the thrilling world of cryptocurrency, as of press time, BTC is trading at $108,821. Not bad for a currency that might just be in the crosshairs of Washington’s legislative wrath.

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2025-07-09 18:43