A group of Democratic senators is proposing sanctions against the Salvadoran president over the country’s use of Bitcoin and alleged human rights violations.
A bill introduced in the US Senate directly targets El Salvador’s Bitcoin policy, threatening to impose sanctions including the freezing of US-held assets, visa denials, and the suspension of financial aid.
The legislative proposal, titled the “El Salvador Accountability Act of 2025” (S. 2058), was introduced by Senator Chris Van Hollen along with colleagues Tim Kaine and Alex Padilla. The bill explicitly calls for cutting ties with the Bukele administration.
The Democratic senators claim that Bitcoin is being used in the Central American country to facilitate corruption, sanctions evasion, and human rights abuses.
Mandatory report on the Bitcoin strategy
Bill S. 2058 establishes that the US Secretary of State, in coordination with the Treasury Secretary, must submit a detailed report within 90 days of the law’s possible approval. The document, to be presented to the relevant congressional committees, would analyze the Salvadoran government’s use of Bitcoin.
The report would examine whether President Bukele and his officials have used Bitcoin “for significant acts of corruption, extortion, and evasion of US laws.” Special attention would be given to the total amount of government funds invested in Bitcoin purchases, the exchanges used, the wallet addresses involved, and the individuals controlling those accounts.
The investigation would also include an assessment of whether Bitcoin is being used to circumvent international financial restrictions.
Officials under scrutiny
Among the Salvadoran officials who could face sanctions are the Vice President, the Ministers of Foreign Affairs, Defense, Economy, and Finance. Sanctions could be applied if credible evidence emerges of their involvement in the suppression of civil liberties or in illicit financial activities linked to the management of Bitcoin in El Salvador.
One of the legal concerns raised by lawmakers involves the government’s use of the “state of exception,” a law that allows for the temporary suspension of certain civil rights. According to the bill, these provisions have been misused to repress political dissent and civil society.
In response to the bill, President Bukele commented via a post on X:
