Washington, D.C. – A group of U.S. Democratic senators is ramping up pressure on El Salvador’s government, led by President Nayib Bukele, over its embrace of Bitcoin and alleged human rights violations. They have introduced a bill that could lead to sanctions and a suspension of diplomatic relations with the Central American nation.
🔹 The Salvadoran Accountability Act of 2025 (S. 2058), introduced by Senators Chris Van Hollen, Tim Kaine, and Alex Padilla, calls for a thorough investigation into the Salvadoran regime’s use of cryptocurrencies—specifically concerning corruption, sanctions evasion, and abuse of state power.

Bitcoin as a Tool of Power? The U.S. Demands Evidence
Under the bill, the U.S. State Department and the Treasury must submit a detailed report to Congress within 90 days. The report should examine whether Bitcoin has been used by Bukele’s government for corruption, bribery, or to circumvent U.S. and international sanctions.
The report must include:
🔹 A breakdown of Bitcoin purchases made by the government
🔹 The exchanges and wallets used
🔹 The individuals controlling those accounts
Bukele’s administration has reportedly been stockpiling crypto since 2021 and currently holds over 6,200 BTC, with the president previously stating the country is buying one Bitcoin per day.
Senators warn that anonymous crypto transactions may be used to bypass global restrictions and strengthen authoritarian rule.
State of Emergency Under Scrutiny, U.S. Aid in Jeopardy
Beyond financial concerns, the bill criticizes the alleged abuse of El Salvador’s state of emergency, which was intended for temporary security measures but is reportedly used to suppress dissent and civil society.
Tensions escalated further with the case of Kilmar Abrego Garcia, a U.S. citizen mistakenly deported to El Salvador and held in custody. Congressman Jamie Raskin called for the suspension of the $6 million U.S. aid to El Salvador until Bukele's government complies with its legal obligations.
Legal Battle in U.S. Courts
In July, a federal judge rejected the U.S. Department of Justice’s attempt to dismiss Garcia’s lawsuit, labeling its arguments “baseless” and criticizing the U.S. government’s stance toward its own citizen.
Bukele’s Response? Silence So Far
As of publication, El Salvador’s government has not responded to the Senate bill or the investigation requests. Meanwhile, Washington continues to apply pressure, with potential direct sanctions against government officials—including President Bukele—looming on the horizon.
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