S.Amdt. 6078

1. Adds SEC. 1262. REPORTS ON ADOPTION OF CRYPTOCURRENCY AS LEGAL TENDER IN EL SALVADOR at the end of subtitle E of title XII

   Adds a section

   In S.Amdt. 5499 as proposed

   (4) North Africa.

   Inserted: SEC. 1262. REPORTS ON ADOPTION OF CRYPTOCURRENCY AS LEGAL TENDER IN EL SALVADOR.

   Inserted: (a) In General.--Not later than 60 days after the date of the enactment of this Act, the Secretary of State and the Secretary of the Treasury, in coordination with the heads of other relevant Federal departments and agencies, shall jointly submit to the appropriate committees of Congress a report on the adoption by the Government of El Salvador of a cryptocurrency as legal tender.

   Inserted: (b) Elements.--The report required by subsection (a) shall include the following:

   Inserted: (1) A description of the process followed by the Government of El Salvador to develop and enact the Bitcoin Law (Legislative Decree No. 57, Official Record No. 110, Volume 431, enacted June 9, 2021), which provides the cryptocurrency, Bitcoin, with legal tender status in El Salvador.

   Inserted: (2) An assessment of--

   Inserted: (A) the regulatory framework in El Salvador with respect to the adoption of a cryptocurrency as legal tender and the technical capacity of El Salvador to ensure the financial integrity and cybersecurity standards associated with virtual-asset transactions;

   Inserted: (B) whether the regulatory framework in El Salvador meets the recommendations of the Financial Action Task Force with respect to virtual-asset transactions;

   Inserted: (C) the impact on individuals and businesses of requiring tender of Bitcoin; and

   Inserted: (D) the impact of such adoption of a cryptocurrency on--

   Inserted: (i) the macroeconomic stability and public finances of El Salvador, including taxation;

   Inserted: (ii) the rule of law and democratic governance in El Salvador;

   Inserted: (iii) the unbanked population in El Salvador;

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   Inserted: (iv) the flow of remittances from the United States to El Salvador;

   Inserted: (v) El Salvador's relations with multilateral financial institutions, such as the International Monetary Fund and the Word Bank;

   Inserted: (vi) bilateral and international efforts to combat transnational illicit activities;

   Inserted: (vii) El Salvador's bilateral economic and commercial relationship with the United States and the potential for reduced use by El Salvador of the United States dollar;

   Inserted: (viii) existing United States sanctions frameworks and the potential for the use of cryptocurrency to affect such sanctions;

   Inserted: (ix) the environmental impact of cryptocurrency mining activities in El Salvador and the capacity of the electric grid in El Salvador to deliver electricity meeting or exceeding the level available before the adoption of a cryptocurrency as legal tender; and

   Inserted: (x) the feasibility of using cryptocurrency mining activities for purposes of enhancing grid resiliency in El Salvador.

   Inserted: (3) A description of the internet infrastructure of El Salvador and an assessment of--

   Inserted: (A) the degree to which cryptocurrency is used in El Salvador;

   Inserted: (B) matters relating to chain of custody and the potential for hacking and cybertheft of cryptocurrency; and

   Inserted: (C) access to transparent and affordable internet and digital infrastructure among the unbanked population of El Salvador.

   Inserted: (c) Plan To Mitigate Potential Significant Risks to United States Financial System Posed by Adoption of Cryptocurrency as Legal Tender in Certain Countries.--Not later than 90 days after the submittal of the report required by subsection (a), the Secretary of State and the Secretary of the Treasury, in coordination with the heads of other relevant Federal departments and agencies, shall jointly submit to the appropriate committees of Congress a plan to mitigate any potential risk to the United States financial system posed by the adoption of a cryptocurrency as legal tender in--

   Inserted: (1) El Salvador; and

   Inserted: (2) any other country that uses the United States dollar as legal tender.

   Inserted: (d) Subsequent Report.--Not later than 270 days after the submittal of the report required by subsection (a), the Secretary of State and the Secretary of the Treasury, in coordination with the heads of other relevant Federal departments and agencies, shall jointly submit to the appropriate committees of Congress an updated version of such report, including a description of any significant development related to the risks to the United States financial system posed by the use of a cryptocurrency as legal tender in El Salvador.

   Inserted: (e) Appropriate Committees of Congress Defined.--In this section, the term "appropriate committees of Congress" means--

   Inserted: (1) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate; and

   Inserted: (2) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives.

   Original wording

   At the end of subtitle E of title XII, add the following:

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As printed