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  • MCC 22059

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    MichaelPatrickMcSweeney
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    This bill requires the Secretary of State to submit reports to Congress on El Salvador's adoption of cryptocurrency as legal tender. The initial report within 60 days must describe the process El Salvador followed and assess its regulatory framework, impact, and technical capacity to mitigate risks. A subsequent plan within 90 days must propose ways to mitigate risks to the U.S. financial system, and a follow up report within 270 days provides an update on significant developments and ongoing risks.

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    Source: https://www.foreign.senate.gov/imo/media/doc/MCC22059.pdf

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    Mcc 22059

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    This bill requires the Secretary of State to submit reports to Congress on El Salvador's adoption of cryptocurrency as legal tender. The initial report within 60 days must describe the process El Salvador followed and assess its regulatory framework, impact, and technical capacity to mitigate risks. A subsequent plan within 90 days must propose ways to mitigate risks to the U.S. financial system, and a follow up report within 270 days provides an update on significant developments and ongoing risks.

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    © All Rights Reserved
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    20K views5 pages

    MCC 22059

    Uploaded by

    MichaelPatrickMcSweeney
    This bill requires the Secretary of State to submit reports to Congress on El Salvador's adoption of cryptocurrency as legal tender. The initial report within 60 days must describe the process El Salvador followed and assess its regulatory framework, impact, and technical capacity to mitigate risks. A subsequent plan within 90 days must propose ways to mitigate risks to the U.S. financial system, and a follow up report within 270 days provides an update on significant developments and ongoing risks.

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    © All Rights Reserved
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    of 5

    MCC22059 6K3 S.L.C.

    S. ll
    117TH CONGRESS
    2D SESSION

    To require reports on the adoption of a cryptocurrency as legal tender in


    El Salvador, and for other purposes.

    IN THE SENATE OF THE UNITED STATES


    llllllllll
    Mr. RISCH (for himself, Mr. MENENDEZ, and Mr. CASSIDY) introduced the
    following bill; which was read twice and referred to the Committee on
    llllllllll

    A BILL
    To require reports on the adoption of a cryptocurrency as
    legal tender in El Salvador, and for other purposes.

    1 Be it enacted by the Senate and House of Representa-


    2 tives of the United States of America in Congress assembled,
    3 SECTION 1. SHORT TITLE.

    4 This Act may be cited as the ‘‘Accountability for


    5 Cryptocurrency in El Salvador Act’’ or ‘‘ACES Act’’.
    6 SEC. 2. REPORTS ON ADOPTION OF CRYPTOCURRENCY AS

    7 LEGAL TENDER IN EL SALVADOR.

    8 (a) IN GENERAL.—Not later than 60 days after the


    9 date of the enactment of this Act, the Secretary of State,
    10 in coordination with the heads of other relevant Federal
    MCC22059 6K3 S.L.C.

    2
    1 departments and agencies, shall submit to the appropriate
    2 committees of Congress a report on the adoption by the
    3 Government of El Salvador of a cryptocurrency as legal
    4 tender.
    5 (b) ELEMENTS.—The report required by subsection
    6 (a) shall include the following:
    7 (1) A description of the process followed by the
    8 Government of El Salvador to develop and enact the
    9 Bitcoin Law (Legislative Decree No. 57, Official
    10 Record No. 110, Volume 431, enacted June 9,
    11 2021), which provides the cryptocurrency, Bitcoin,
    12 with legal tender status in El Salvador.
    13 (2) An assessment of—
    14 (A) the regulatory framework in El Sal-
    15 vador with respect to the adoption of a
    16 cryptocurrency as legal tender and the technical
    17 capacity of El Salvador to effectively mitigate
    18 the financial integrity and cyber security risks
    19 associated with virtual-asset transactions;
    20 (B) whether the regulatory framework in
    21 El Salvador meets the requirements of the Fi-
    22 nancial Action Task Force with respect to vir-
    23 tual-asset transactions;
    24 (C) the impact on individuals and busi-
    25 nesses of requiring tender of Bitcoin; and
    MCC22059 6K3 S.L.C.

    3
    1 (D) the impact of such adoption of a
    2 cryptocurrency on—
    3 (i) the macroeconomic stability and
    4 public finances of El Salvador, including
    5 taxation;
    6 (ii) the rule of law and democratic
    7 governance in El Salvador;
    8 (iii) the unbanked population in El
    9 Salvador;
    10 (iv) the flow of remittances from the
    11 United States to El Salvador;
    12 (v) El Salvador’s relations with multi-
    13 lateral financial institutions, such as the
    14 International Monetary Fund and the
    15 Word Bank;
    16 (vi) bilateral and international efforts
    17 to combat transnational illicit activities;
    18 (vii) El Salvador’s bilateral economic
    19 and commercial relationship with the
    20 United States and the potential for re-
    21 duced use by El Salvador of the United
    22 States dollar; and
    23 (viii) existing United States sanctions
    24 frameworks and the potential for the use
    MCC22059 6K3 S.L.C.

    4
    1 of cryptocurrency to circumvent such sanc-
    2 tions.
    3 (3) A description of the internet infrastructure
    4 of El Salvador and an assessment of—
    5 (A) the degree to which cryptocurrency is
    6 used in El Salvador;
    7 (B) matters relating to chain of custody
    8 and the potential for hacking and cybertheft of
    9 cryptocurrency; and
    10 (C) access to transparent and affordable
    11 internet and digital infrastructure among the
    12 unbanked population of El Salvador.
    13 (c) PLAN TO MITIGATE RISKS TO UNITED STATES
    14 FINANCIAL SYSTEM POSED BY ADOPTION OF

    15 CRYPTOCURRENCY AS LEGAL TENDER IN CERTAIN


    16 COUNTRIES.—
    17 (1) IN GENERAL.—Not later than 90 days after
    18 the submittal of the report required by subsection
    19 (a), the Secretary of State, in coordination with the
    20 heads of other relevant Federal departments and
    21 agencies, shall submit to the appropriate committees
    22 of Congress a plan to mitigate any potential risk to
    23 the United States financial system posed by the
    24 adoption of a cryptocurrency as legal tender in—
    25 (A) El Salvador; and
    MCC22059 6K3 S.L.C.

    5
    1 (B) any other country that uses the United
    2 States dollar as legal tender.
    3 (2) IMPLEMENTATION.—Not later than 30 days
    4 after the date on which the plan is submitted under
    5 paragraph (1), the Secretary of State shall com-
    6 mence implementation of the plan.
    7 (d) SUBSEQUENT REPORT.—Not later than 270 days
    8 after the submittal of the report required by subsection
    9 (a), the Secretary of State, in coordination with the heads
    10 of other relevant Federal departments and agencies, shall
    11 submit to the appropriate committees of Congress an up-
    12 dated version of such report, including a description of any
    13 significant development related to the risks to the United
    14 States financial system posed by the use of a
    15 cryptocurrency as legal tender in El Salvador.
    16 (e) APPROPRIATE COMMITTEES OF CONGRESS DE-
    17 FINED.—In this section, the term ‘‘appropriate commit-
    18 tees of Congress’’ means—
    19 (1) the Committee on Foreign Relations and
    20 the Committee on Banking, Housing, and Urban Af-
    21 fairs of the Senate; and
    22 (2) the Committee on Foreign Affairs and the
    23 Committee on Financial Services of the House of
    24 Representatives.

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