A group of U.S. Senate Democrats is pushing for new sanctions against El Salvador’s President Nayib Bukele, citing “human rights abuses”, “corruption”, and the country’s aggressive bitcoin push.
The bill, called the El Salvador Accountability Act of 2025, would investigate how the Central American nation is using bitcoin — and if they’re using it to dodge international sanctions or commit fraud.
The bill was introduced in June by Democratic Senators Chris Van Hollen (D-Md.), Tim Kaine (D-Va.) and Alex Padilla (D-Calif.). If passed, it would require the U.S. Secretary of State and the Treasury Department to submit a report within 90 days on El Salvador’s digital currency use.
The bill asks the U.S. government to clarify:
- How much public money has the Bukele administration spent buying bitcoin?
- Which exchanges were used for these transactions?
- What are the government’s digital wallet addresses?
- Who has access to these wallets and the funds inside?
- Is Bitcoin being used to circumvent international sanctions?
- Are there signs of corruption or misuse of digital assets?
The bill also proposes sanctions—including asset freezes, visa bans and financial transaction restrictions—for Bukele and other top Salvadoran officials if they’re found guilty of human rights abuses or other violations.
El Salvador made headlines in 2021 when it became the first country in the world to adopt bitcoin as legal tender.
Bukele’s government has since doubled down on its commitment to the scarce digital asset. The country even announced a plan to buy one bitcoin every day until the asset becomes unaffordable with fiat currency.
As of now, El Salvador holds over 6,232 BTC, worth more than $678 million at current prices, making it one of the largest national holders of bitcoin.
President Bukele didn’t stay silent after the bill’s introduction. In a sharp response on social media, he mocked the Democrats, calling them “just salty”. In another public comment, Bukele laughed off the accusations and dismissed the entire bill as politically motivated.
The proposed sanctions have sparked political debate both in the U.S. and in El Salvador. Supporters of Bukele’s administration say U.S. lawmakers are just jealous or trying to interfere in El Salvador’s sovereignty.
In contrast, Senate Democrats insist their focus is on protecting democracy and ensuring accountability.
“President Bukele may think he has a friend in President Trump,” said Senator Tim Kaine, “but he should know that Americans will not tolerate his efforts to undermine the rule of law and democratic institutions.”
Senator Van Hollen also criticized Bukele’s close ties to previous U.S. administrations, accusing him of working with them to deport gang suspects into El Salvador’s high-security prisons — a move that some say bypassed U.S. legal protections.
If passed, the El Salvador Accountability Act would be one of the strongest actions taken by the U.S. against a foreign government’s Bitcoin policy.
But the bill has hurdles ahead. Experts say it’s unlikely to pass without bipartisan support and some Republican lawmakers are supportive of Bitcoin and skeptical of government overreach.
