An April 4, 2022 press release by the office of California Congresswoman Norma Torres announced that Congresswoman Torres and Arkansas Congressman Rick Crawford introduced the Accountability for Cryptocurrency in El Salvador (ACES) Act.The press release states that the ACES Act is a companion bill to a bill introduced to the Senate in February 2022 that would require federal agencies to submit reports assessing El Salvador’s cybersecurity and financial stability. According to the press release, the purpose of the ACES Act is to mitigate financial risks to the United States as a result of El Salvador’s adoption of Bitcoin as legal currency.
The press release describes that the ACES Act directs the State Department to analyze the risks the use of Bitcoin as legal currency pose to cybersecurity, economic stability, and democratic governance in El Salvador, and to create a plan to mitigate potential risks to the United States’ financial system. Specifically, the ACES Act states that it would require federal agencies to submit a two-part report describing, among other things, how El Salvador will cyber security risks to digital assets, whether El Salvador meets Financial Action Task Force requirements, the impact of the use use of Bitcoin as legal currency on individuals and businesses, and the effect Bitcoin will have on the Salvadoran economy. Additionally, the ACES Act states that federal agencies would also have to assess El Salvador’s internet infrastructure, custody of Bitcoin, the potential for hacking, and the ability of underprivileged Salvadorans to access Bitcoin.