• The bill, presented by three lawmakers on the subject matter, was approved by the Senate committee.
• Nayib Bukele, the president of Central America, took immediate action to protest the act, and confronted one of its proponents on Twitter (NYSE:).
• If this initiative is accepted, the U.S. might be monitoring any cryptocurrency transactions made by Central American nations.

A bill that would allow the U.S. Senate to oversee operations in El Salvador could be passed. The initiative, presented by Republican legislators Bill Cassidy, James Risch and Democrat Bob Menéndez, has already passed the examination of the Committee on Foreign Relations of the U.S. Senate this week.

The bill, called ‘Responsibility Law for Cryptocurrencies in El Salvador’ or the ‘ACES Law‘, would allow United States agencies to monitor capital movements made to the country in cryptocurrencies. The proposal only covers transactions within the United States, as the U.S. does not have any jurisdiction over El Salvador.

Now, the bill is headed to the U.S. Senate to be discussed. It also includes a long list of issues related cryptocurrency operations in El Salvador. The issues include remittances to the US, money laundering risks, monetary policy and finances for Salvadorans living in the country.

El Salvador passed the Bitcoin Law on September 20, 2021. This network of Bitcoin ATMs was set up in several U.S. towns to allow Salvadoran immigrant to send money from the U.S., which is the country that receives the most remittances to El Salvador.

Bukele vs Cassidy

Sen. John McCain argued that this law was intended to safeguard the U.S. financial sector from any adverse effects that could result from El Salvador’s adoption of Bitcoin as legal tender.

It is currently unknown when and where the U.S. Congress will debate the bill. The President of El Salvador Nayib Bukele, who had just passed the first stage of the Senate committee approval, immediately responded via Twitter.

“Never in my wildest dreams would I have thought that the United States government would be afraid of what we are doing here,” said the Salvadoran leader, mocking Senator Bill Cassidy, the main promoter of the bill.
Senator Cassidy, then, responded to Bukele’s remarks, saying:

“Salvadoran residents in the United States don’t like this policy. We listen to them. Perhaps they don’t trust a president who brags about trading Bitcoin ‘naked.’”
To which Bukele jokingly replied once more: “Sometimes while in the toilet…”

Three U.S. Senators requested that the White House investigate Bitcoin operations in El Salvador. As the Central American president posted, this proposal led to a confrontation between legislators and Bukele.

“We are not your neighborhood, your backyard, or your front yard. Keep out of our inner affairs. Do not try to manage something that you cannot control.

Flipside

• Within 60 days, the State Department is expected to present a report about the risks that bitcoin could pose in El Salvador.
• Bukele, who adopted Bitcoin as legal tender, has been subject to backlash both within and outside of his country.
• His government has announced that the launch of Bitcoin bonds will be delayed.

Why you should care

• Bukele’s confrontation with the U.S. comes as his controversial monetary policy regarding bitcoin faces intense scrutiny with bitcoin’s prices remaining depressed.

Bukele also met Changpeng Zhao on Thursday 24th to discuss how he can help promote cryptocurrency in the country.

On behalf of U.S. President Joe Biden’s request, the Federal Reserve has moved to accelerate the process for the U.S. CBDC digital dollar, which is now competing with bitcoin.

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