El Salvador Accountability Act of 2025
The legislative proposal known as the “El Salvador Accountability Act of 2025” is aimed at imposing sanctions on key officials in the El Salvador government for human rights abuses that affect U.S. citizens. Significant focus is also placed on investigating the nation’s controversial integration of bitcoin into its financial framework.
Legislative Action
In June, U.S. Senators Chris Van Hollen, Tim Kaine, and Alex Padilla took action by presenting this bill to the Senate. The goal is to hold accountable members of El Salvador’s executive branch, targeting those believed to be complicit in corruption that allegedly involves the illicit transfer of individuals from the U.S. to El Salvador in breach of their constitutional protections.
Targets of the Bill
One of the primary targets of the bill is El Salvador’s President Nayib Bukele, along with certain ministers in his cabinet, as well as any foreign nationals implicated in severe rights infringements, especially those benefiting from taxpayer resources while undermining the rights of U.S. residents.
Investigation into Bitcoin Transactions
Key to the legislation is an investigation into the financial transactions involving bitcoin, particularly regarding its use in potential corruption. If enacted, the bill would mandate the Secretary of State to compile a comprehensive report that connects bitcoin transactions to President Bukele and his officials, emphasizing their alleged role in facilitating corruption and evading sanctions through cryptocurrency.
The forthcoming report would provide an evaluation of the amount spent by El Salvador on bitcoin investments, identify the digital wallets and exchanges utilized, and create a roster of individuals managing these cryptocurrency assets. Moreover, it would analyze whether bitcoin is being exploited to navigate around financial sanctions, thereby exposing vulnerabilities that could foster corrupt practices.
Reactions and Criticism
Senator Van Hollen expressed strong criticism of President Bukele, accusing him of conspiring with prior U.S. administration officials and misusing American taxpayer money to detain individuals in violation of their constitutional rights.
In response to these allegations, Bukele dismissed the accusations on social media, suggesting that the opposing Democrats were merely disgruntled.
Context of the Proposal
This move comes amidst ongoing debates over El Salvador’s economic direction, particularly following its adoption of bitcoin as legal tender, as well as its interactions with international financial institutions, including recent positive reviews from the International Monetary Fund (IMF).
