US Senators Demand Sanctions Against El Salvador’s Nayib Bukele Amid Bitcoin Controversy and Rights Abuses

El Salvador’s Bitcoin experiment just hit a political minefield. US lawmakers are calling for sanctions against President Nayib Bukele, accusing him of misusing crypto and trampling human rights—because nothing says 'financial innovation' like mixing volatile assets with authoritarian vibes.

The Backlash Builds

Bukele’s all-in Bitcoin bet—making it legal tender in 2021—was already polarizing. Now, senators claim it’s become a tool for dodging accountability. No hard numbers? Classic. Just vague allegations and geopolitical posturing.

Crypto’s Reputation on the Line

Another day, another case of crypto getting tangled in power struggles. Meanwhile, Wall Street still can’t decide if digital assets are the future or a speculative sideshow. Spoiler: They’ll flip-flop after the next bull run.

Sanctions talk won’t crash the market, but it’s a reminder: When governments and crypto collide, the little guy always pays. Buckle up.

Bill details

The proposed legislation accuses El Salvador’s government of violating internationally recognized human rights, particularly through the country’s ongoing state of exception.

Due to this, it calls for sanctions on President Bukele, members of his cabinet, and other individuals working on behalf of the government—including political party officials and leaders of government institutions—based on credible information of misconduct.

The bill proposes strong penalties, including freezing US-held assets, visa denials, and suspending financial aid.

The lawmakers argue that Salvadoran institutions have committed these violations while benefiting from US taxpayer dollars.

The bill also requires the president to provide annual updates, beginning with a detailed report on sanctioned individuals within 90 days of its passage.

Meanwhile, the legislation also directs the US Secretary of State to submit a comprehensive report about El Salvador’s crypto use within 90 days of the bill’s enactment.

This report must outline how Salvadoran officials have allegedly used bitcoin and other digital assets to engage in corruption, evade sanctions, and misuse government resources.

It should include an estimate of how much public funding El Salvador has spent on Bitcoin acquisitions, identify the exchanges used for those purchases, list associated wallet addresses, and highlight any actors with access to the funds.

Additionally, the report must evaluate potential loopholes in El Salvador’s crypto strategy that could be exploited for illicit purposes, including efforts to bypass international financial sanctions.

Bukele’s response

In response to the bill, President Bukele dismissed the US lawmakers’ attempt to impose sanctions on him and his government.

On June 8, Bukele mocked the proposal in a post on X (formerly Twitter), suggesting that the lawmakers’ efforts were fueled by frustration.

This reaction is not surprising, given the growing relationship between the two presidents. This includes their collaboration on El Salvador’s efforts to combat criminal gangs and their shared pro-crypto stance.

President TRUMP invited Bukele to the White House in April to discuss US immigration support. Two months later, Trump’s advisor, Bo Hines, met with Bukele to explore potential crypto partnerships.