A group of U.S. Senate Democrats introduced legislation in June aiming to impose sanctions on El Salvador’s President Nayib Bukele over alleged misuse of public funds for Bitcoin purchases. The bill, designated H.B. 2058, calls on the Secretary of State to issue a detailed report examining whether cryptocurrency has been used by the Bukele administration as a tool for corruption and sanctions evasion.
Officially titled the “El Salvador Accountability Act of 2025,” the proposal outlines the following reporting requirements:
- An estimate of the total funds spent by the Salvadoran government on Bitcoin
- Identification of the country’s digital wallet addresses and exchanges used
- A list of individuals with access to these funds
- A review of whether Bitcoin or other cryptocurrencies have been used to bypass U.S. or international sanctions
If enacted, the law would require the report to be submitted within 90 days of its effective date.
This legislative move follows mounting concerns in Washington about the risks posed by state-level adoption of cryptocurrency, particularly in regimes accused of authoritarian behavior. El Salvador became the first country to adopt Bitcoin as legal tender in 2021, a move that drew global attention and criticism.
Reported from Washington, D.C., on July 8, 2025, at 10:45 a.m. Eastern Time.