[Congressional Record Volume 168, Number 158 (Thursday, September 29, 2022)]
[Senate]
[Page S5606]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 6078. Mr. RISCH (for himself and Mr. Menendez) submitted an
amendment intended to be proposed to amendment SA 5499 submitted by Mr.
Reed (for himself and Mr. Inhofe) and intended to be proposed to the
bill H.R. 7900, to authorize appropriations for fiscal year 2023 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:
At the end of subtitle E of title XII, add the following:
SEC. 1262. 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 and the
Secretary of the Treasury, in coordination with the heads of
other relevant Federal departments and agencies, shall
jointly 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 ensure the financial
integrity and cybersecurity standards associated with
virtual-asset transactions;
(B) whether the regulatory framework in El Salvador meets
the recommendations 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 affect such
sanctions;
(ix) the environmental impact of cryptocurrency mining
activities in El Salvador and the capacity of the electric
grid in El Salvador to deliver 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.
(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 Potential Significant Risks to United
States Financial System Posed by Adoption of Cryptocurrency
as Legal Tender in Certain Countries.--Not later than 90 days
after the submittal of the report required by subsection (a),
the Secretary of State and the Secretary of the Treasury, in
coordination with the heads of other relevant Federal
departments and agencies, shall jointly 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--
(1) El Salvador; and
(2) any other country that uses the United States dollar as
legal tender.
(d) Subsequent Report.--Not later than 270 days after the
submittal of the report required by subsection (a), the
Secretary of State and the Secretary of the Treasury, in
coordination with the heads of other relevant Federal
departments and agencies, shall jointly 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.
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