[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3666 Reported in Senate (RS)]
<DOC>
Calendar No. 321
117th CONGRESS
2d Session
S. 3666
To require reports on the adoption of a cryptocurrency as legal tender
in El Salvador, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 16, 2022
Mr. Risch (for himself, Mr. Menendez, and Mr. Cassidy) introduced the
following bill; which was read twice and referred to the Committee on
Foreign Relations
April 4 (legislative day, March 31), 2022
Reported by Mr. Menendez, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To require reports on the adoption of a cryptocurrency as legal tender
in El Salvador, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Accountability for
Cryptocurrency in El Salvador Act'' or ``ACES Act''.</DELETED>
<DELETED>SEC. 2. REPORTS ON ADOPTION OF CRYPTOCURRENCY AS LEGAL TENDER
IN EL SALVADOR.</DELETED>
<DELETED> (a) In General.--Not later than 60 days after the date of
the enactment of this Act, the Secretary of State, in coordination with
the heads of other relevant Federal departments and agencies, shall
submit to the appropriate committees of Congress a report on the
adoption by the Government of El Salvador of a cryptocurrency as legal
tender.</DELETED>
<DELETED> (b) Elements.--The report required by subsection (a) shall
include the following:</DELETED>
<DELETED> (1) A description of the process followed by the
Government of El Salvador to develop and enact the Bitcoin Law
(Legislative Decree No. 57, Official Record No. 110, Volume
431, enacted June 9, 2021), which provides the cryptocurrency,
Bitcoin, with legal tender status in El Salvador.</DELETED>
<DELETED> (2) An assessment of--</DELETED>
<DELETED> (A) the regulatory framework in El
Salvador with respect to the adoption of a
cryptocurrency as legal tender and the technical
capacity of El Salvador to effectively mitigate the
financial integrity and cyber security risks associated
with virtual-asset transactions;</DELETED>
<DELETED> (B) whether the regulatory framework in El
Salvador meets the requirements of the Financial Action
Task Force with respect to virtual-asset
transactions;</DELETED>
<DELETED> (C) the impact on individuals and
businesses of requiring tender of Bitcoin;
and</DELETED>
<DELETED> (D) the impact of such adoption of a
cryptocurrency on--</DELETED>
<DELETED> (i) the macroeconomic stability
and public finances of El Salvador, including
taxation;</DELETED>
<DELETED> (ii) the rule of law and
democratic governance in El Salvador;</DELETED>
<DELETED> (iii) the unbanked population in
El Salvador;</DELETED>
<DELETED> (iv) the flow of remittances from
the United States to El Salvador;</DELETED>
<DELETED> (v) El Salvador's relations with
multilateral financial institutions, such as
the International Monetary Fund and the Word
Bank;</DELETED>
<DELETED> (vi) bilateral and international
efforts to combat transnational illicit
activities;</DELETED>
<DELETED> (vii) El Salvador's bilateral
economic and commercial relationship with the
United States and the potential for reduced use
by El Salvador of the United States dollar;
and</DELETED>
<DELETED> (viii) existing United States
sanctions frameworks and the potential for the
use of cryptocurrency to circumvent such
sanctions.</DELETED>
<DELETED> (3) A description of the internet infrastructure
of El Salvador and an assessment of--</DELETED>
<DELETED> (A) the degree to which cryptocurrency is
used in El Salvador;</DELETED>
<DELETED> (B) matters relating to chain of custody
and the potential for hacking and cybertheft of
cryptocurrency; and</DELETED>
<DELETED> (C) access to transparent and affordable
internet and digital infrastructure among the unbanked
population of El Salvador.</DELETED>
<DELETED> (c) Plan To Mitigate Risks to United States Financial
System Posed by Adoption of Cryptocurrency as Legal Tender in Certain
Countries.--</DELETED>
<DELETED> (1) In general.--Not later than 90 days after the
submittal of the report required by subsection (a), the
Secretary of State, in coordination with the heads of other
relevant Federal departments and agencies, shall submit to the
appropriate committees of Congress a plan to mitigate any
potential risk to the United States financial system posed by
the adoption of a cryptocurrency as legal tender in--</DELETED>
<DELETED> (A) El Salvador; and</DELETED>
<DELETED> (B) any other country that uses the United
States dollar as legal tender.</DELETED>
<DELETED> (2) Implementation.--Not later than 30 days after
the date on which the plan is submitted under paragraph (1),
the Secretary of State shall commence implementation of the
plan.</DELETED>
<DELETED> (d) Subsequent Report.--Not later than 270 days after the
submittal of the report required by subsection (a), the Secretary of
State, in coordination with the heads of other relevant Federal
departments and agencies, shall submit to the appropriate committees of
Congress an updated version of such report, including a description of
any significant development related to the risks to the United States
financial system posed by the use of a cryptocurrency as legal tender
in El Salvador.</DELETED>
<DELETED> (e) Appropriate Committees of Congress Defined.--In this
section, the term ``appropriate committees of Congress'' means--
</DELETED>
<DELETED> (1) the Committee on Foreign Relations and the
Committee on Banking, Housing, and Urban Affairs of the Senate;
and</DELETED>
<DELETED> (2) the Committee on Foreign Affairs and the
Committee on Financial Services of the House of
Representatives.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Accountability for Cryptocurrency in
El Salvador Act'' or ``ACES Act''.
SEC. 2. REPORTS ON ADOPTION OF CRYPTOCURRENCY AS LEGAL TENDER IN EL
SALVADOR.
(a) In General.--Not later than 60 days after the date of the
enactment of this Act, the Secretary of State, in coordination with the
heads of other relevant Federal departments and agencies, shall submit
to the appropriate committees of Congress a report on the adoption by
the Government of El Salvador of a cryptocurrency as legal tender.
(b) Elements.--The report required by subsection (a) shall include
the following:
(1) A description of the process followed by the Government
of El Salvador to develop and enact the Bitcoin Law
(Legislative Decree No. 57, Official Record No. 110, Volume
431, enacted June 9, 2021), which provides the cryptocurrency,
Bitcoin, with legal tender status in El Salvador.
(2) An assessment of--
(A) the regulatory framework in El Salvador with
respect to the adoption of a cryptocurrency as legal
tender and the technical capacity of El Salvador to
effectively mitigate the financial integrity and
cybersecurity risks associated with virtual-asset
transactions;
(B) whether the regulatory framework in El Salvador
meets the requirements of the Financial Action Task
Force with respect to virtual-asset transactions;
(C) the impact on individuals and businesses of
requiring tender of Bitcoin; and
(D) the impact of such adoption of a cryptocurrency
on--
(i) the macroeconomic stability and public
finances of El Salvador, including taxation;
(ii) the rule of law and democratic
governance in El Salvador;
(iii) the unbanked population in El
Salvador;
(iv) the flow of remittances from the
United States to El Salvador;
(v) El Salvador's relations with
multilateral financial institutions, such as
the International Monetary Fund and the Word
Bank;
(vi) bilateral and international efforts to
combat transnational illicit activities;
(vii) El Salvador's bilateral economic and
commercial relationship with the United States
and the potential for reduced use by El
Salvador of the United States dollar;
(viii) existing United States sanctions
frameworks and the potential for the use of
cryptocurrency to circumvent such sanctions;
(ix) the environmental impact of
cryptocurrency mining activities in El
Salvador, the deforestation associated with the
construction of new cryptocurrency mining
facilities, and the capacity of the electric
grid in El Salvador to deliver reliable and
affordable electricity meeting or exceeding the
level available before the adoption of a
cryptocurrency as legal tender; and
(x) the feasibility of using cryptocurrency
mining activities for purposes of enhancing
grid resiliency in El Salvador and any other
country that uses the United States dollar as
legal tender.
(3) A description of the internet infrastructure of El
Salvador and an assessment of--
(A) the degree to which cryptocurrency is used in
El Salvador;
(B) matters relating to chain of custody and the
potential for hacking and cybertheft of cryptocurrency;
and
(C) access to transparent and affordable internet
and digital infrastructure among the unbanked
population of El Salvador.
(c) Plan To Mitigate Risks to United States Financial System Posed
by Adoption of Cryptocurrency as Legal Tender in Certain Countries.--
(1) In general.--Not later than 90 days after the submittal
of the report required by subsection (a), the Secretary of
State, in coordination with the heads of other relevant Federal
departments and agencies, shall submit to the appropriate
committees of Congress a plan to mitigate any potential risk to
the United States financial system posed by the adoption of a
cryptocurrency as legal tender in--
(A) El Salvador; and
(B) any other country that uses the United States
dollar as legal tender.
(2) Implementation.--Not later than 30 days after the date
on which the plan is submitted under paragraph (1), the
Secretary of State shall commence implementation of the plan.
(d) Subsequent Report.--Not later than 270 days after the submittal
of the report required by subsection (a), the Secretary of State, in
coordination with the heads of other relevant Federal departments and
agencies, shall submit to the appropriate committees of Congress an
updated version of such report, including a description of any
significant development related to the risks to the United States
financial system posed by the use of a cryptocurrency as legal tender
in El Salvador.
(e) Appropriate Committees of Congress Defined.--In this section,
the term ``appropriate committees of Congress'' means--
(1) the Committee on Foreign Relations and the Committee on
Banking, Housing, and Urban Affairs of the Senate; and
(2) the Committee on Foreign Affairs and the Committee on
Financial Services of the House of Representatives.
Calendar No. 321
117th CONGRESS
2d Session
S. 3666
_______________________________________________________________________
A BILL
To require reports on the adoption of a cryptocurrency as legal tender
in El Salvador, and for other purposes.
_______________________________________________________________________
April 4 (legislative day, March 31), 2022
Reported with an amendment