[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