A New Bill Introduced by Democratic Senators Targets El Salvador Over Bitcoin Holdings and Human Rights Abuses
A group of Democratic senators has introduced a new bill that could impose sanctions on El Salvador’s leadership over its Bitcoin holdings and alleged human rights abuses.
The legislation, titled the “El Salvador Accountability Act of 2025” (S. 2058), was brought before the US Senate by Senator Chris Van Hollen (D-MD), alongside Senators Tim Kaine (D-VA) and Alex Padilla (D-CA).
Democrats Call for Action Against El Salvador’s Government
The bill is calling for the US to cut ties with President Nayib Bukele’s government, which became the first in the world to adopt Bitcoin as legal tender in 2021. Liberal senators claim Bitcoin in the country is being used in corruption, sanction evasion, and human rights violations.
US Government Mandated Report on El Salvador’s Crypto Use
Under the provisions of “S. 2058,” the US Secretary of State, in coordination with the Secretary of the Treasury, would be required to submit a report within 90 days of the bill’s enactment. The report must be released to appropriate congressional committees and question the Salvadoran government’s use of crypto.
The report will analyze whether President Bukele and his officials have used digital assets “for gross corruption, graft, and evading US laws.” It would also examine the total amount of funds the government has spent purchasing Bitcoin, the exchanges used, wallet addresses, and the individuals who control these accounts.
Since 2021, Bukele’s government has aggressively accumulated digital assets, reportedly buying one Bitcoin per day and amassing a treasury of over 6,200 BTC.
Scrutiny on US Aid and Political Support to El Salvador
In an interview with Fox News back in April, Democrat Representative Jamie Raskin (D-MD) expressed frustration over continued American aid to El Salvador. Raskin questioned the Salvadoran government’s refusal to return Kilmar Garcia, a US citizen who was imprisoned in El Salvador.
Kilmar Abrego Garcia was brought back to the United States from El Salvador on June 6, 2025, after being mistakenly deported in mid‑March.
Raskin described the financial support from the US to El Salvador as “dubious,” noting that Bukele has been receiving $6 million from America under a repatriation agreement. According to Raskin, this financial support implies legal authority, which Bukele allegedly refused to exercise by keeping Garcia in detention.
On July 7, a federal judge rejected the Justice Department’s attempt to dismiss Kilmar Abrego Garcia’s lawsuit over his mistaken deportation to El Salvador, calling one of the motions “meritless.”
The Salvadoran government has not formally addressed the detailed findings required by the US Senate’s bill, nor has it confirmed if it will cooperate with any investigations into its government’s crypto use.