U.S. Lawmakers Target El Salvador With Crypto Sanctions Plan

Three Democratic senators—Chris Van Hollen, Tim Kaine, and Alex Padilla—unveiled a bill aiming to penalize El Salvador’s President Nayib Bukele and his allies.

Their proposal demands swift sanctions from President Donald Trump over alleged civil rights abuses and questionable Bitcoin dealings by the Salvadoran government.

The legislation highlights concerns about Bukele’s ongoing “state of exception,” which critics say strips away basic freedoms. Lawmakers also point to El Salvador’s Bitcoin activity, warning that digital assets might be fueling corruption and helping evade global sanctions.

Sanctions would freeze assets, restrict visas, and cut off U.S. financial aid. The senators argue that American tax dollars should not support institutions accused of violating international standards.

Bill Demands Full Crypto Transparency from El Salvador

Within 90 days of the bill’s passage, the president must release a list of targeted individuals. Meanwhile, the Secretary of State would need to publish a detailed breakdown of El Salvador’s digital asset usage.

This report must expose the size of public Bitcoin investments and name the platforms used for transactions. It should also identify wallet addresses, outline who controls the funds, and explore loopholes in the country’s crypto laws. Lawmakers want to determine whether these gaps enable sanctions evasion or misuse of public resources.

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Bukele Fires Back at U.S. Accusations

President Bukele pushed back immediately after the announcement. On June 8, he mocked the proposal on X, suggesting the senators were driven by resentment.

Despite Washington’s pressure, Bukele remains committed to Bitcoin as a national strategy. His defiance underscores the growing rift between El Salvador’s pro-crypto stance and U.S. regulatory concerns.

This latest bill adds momentum to a broader U.S. effort to monitor global crypto adoption and crack down on perceived threats tied to digital finance.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.