What is going on with the U.S. Democratic senators seeking to "sanction" the President of El Salvador?

According to CryptoSlate, a group of Democratic senators in the United States has introduced a new bill to impose sanctions on Salvadoran President Nayib Bukele and members of his government. The bill, titled the "Accountability for El Salvador Act" (S.2058), was proposed by Senators Chris Van Hollen, Tim Kaine, and Alex Padilla. If passed, the bill would require President Donald Trump to impose sanctions on the Salvadoran government for alleged human rights violations and abuses of Bitcoin.

Details of the El Salvador Accountability Act

The proposed legislation accuses the Salvadoran government of violating internationally recognized human rights, particularly due to the ongoing state of emergency in the country. Therefore, it calls for sanctions against President Bukele, his cabinet members, and other individuals representing the government (including party officials and leaders of government agencies) based on credible information of misconduct.

The bill proposes severe penalties, including freezing U.S. assets, denying visas, and suspending economic aid. Lawmakers believe that Salvadoran institutions have committed these illegal acts while profiting from American taxpayers' money.

The bill also requires the president to provide annual updates, starting with a detailed report on sanctioned individuals within 90 days after the bill's passage. At the same time, the bill directs the U.S. Secretary of State to submit a comprehensive report on the use of cryptocurrency in El Salvador within 90 days after the bill's enactment.

The report must outline how Salvadoran officials have used Bitcoin and other digital assets for corruption, evading sanctions, and abusing government resources. It should include an estimate of how much public money El Salvador has spent on Bitcoin acquisitions, identify the exchanges used for these purchases, list the relevant wallet addresses, and highlight any participants authorized to use these funds.

In addition, the report must assess potential vulnerabilities in El Salvador's cryptocurrency strategy that could be exploited for illegal purposes, including attempts to circumvent international financial sanctions.

Buckler's Response

In response to the bill, President Bukele rejected the attempts by U.S. lawmakers to impose sanctions on him and his government. On June 8, Bukele mocked the proposal in a post on X (formerly Twitter), suggesting that the lawmakers' efforts stemmed from frustration.

Given the increasingly close relationship between the two countries' presidents, this reaction is not surprising. This includes their cooperation in combating crime syndicates in El Salvador, as well as their shared supportive stance on cryptocurrency.

In April of this year, President Trump invited Booker to visit the White House to discuss support for American immigration. Two months later, Trump's advisor Bo Hines met with Booker to explore potential cryptocurrency partnerships.