House bill

New House Bill Aims to ‘Mitigate the Risks’ of El Salvador’s Bitcoin Adoption

Two U.S. officials have introduced legislation to mitigate the risks for the United States of El Salvador to adopt bitcoin as legal tender, followinggasbill tabled in February that focuses on the same actions.

The bipartisan House bill, introduced by Reps. Norma Torres (D-California) and Rick Crawford (R-Ark.), aims to “mitigate the risks associated with the adoption of Bitcoin by the United States of El Salvador as legal tender”. He proposes legislation for a so-called liability for cryptocurrency in El Salvador (ACES) Act, the name of the previous Senate bill.

“Global financial institutions have studied and detailed the many risks of Bitcoin adoption by El Salvador, and the international community recognizes the potential danger,” Rep. Torres said in a press release. “El Salvador is an independent democracy and we respect its right to self-government, but the United States must have a plan in place to protect our financial systems from the risks of this decision, which appears to be an imprudent gamble rather than a thoughtful decision.embrace innovation.

According to a April 4 announcement of Torres’ office, the bill “was introduced as complementary legislation” to the Senate bill introduced on February 16 by Senators Jim Risch (R-Idaho), Bob Menendez (DN.J.) and Bill Cassidy (R-La.). Like this Senate bill, the House version would also require the State Department to produce a report on bitcoin adoption in El Salvador and a plan to mitigate potential risks.

the more recent invoice is denoted HR 7391. Like its Senate counterpart, the House version “would require reporting on the adoption of a cryptocurrency as legal tender in El Salvador, and for other purposes.” The bill was referred to the House Financial Services Committee and the House Foreign Affairs Committee.

In the meantime, the Senate has tabled its own version of the bill on its legislative calendarnoting that it has enough support from lawmakers to warrant further discussion.

Rep. Torres is chairman of the Central America Caucus, a bipartisan congressional group. Rep. Crawford is the senior member of the House Standing Select Committee Subcommittee on Counterterrorism, Counterintelligence, and Counterproliferation Intelligence.

Salvadoran President Nayib Bukele, a bitcoin proponent who made the cryptocurrency legal tender last September, responded to the original Senate bill with tweet challenge the United States. “We are not your colony, your backyard or your forecourt,” Bukele said in a Feb. 16 post. Tweeter. “Stay out of our internal affairs.”

Bukele is scheduled to speak at the Bitcoin 2022 conference in Miami on April 7.

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