Bill Overview
Title: ACES Act
Description: This bill requires the Department of State to devise and implement a plan to mitigate any potential risk to the U.S. financial system posed by the adoption of a cryptocurrency as legal tender in El Salvador and any other country that uses the U.S. dollar as legal tender. The State Department must report to Congress on this plan and on various issues relating to El Salvador's adoption of Bitcoin as legal tender.
Sponsors: Sen. Risch, James E. [R-ID]
Target Audience
Population: Citizens of El Salvador and countries using the U.S. dollar as legal tender
Estimated Size: 3310000
- The bill focuses on El Salvador's adoption of Bitcoin as legal tender.
- It aims to address potential risks to the U.S. financial system, implying the U.S. citizens could be affected.
- Countries using the U.S. dollar as legal tender will also be a focus, impacting their citizens, but especially targeting El Salvador.
- The global cryptocurrency community, including investors and businesses involved in the Bitcoin market, may be affected by regulatory changes.
- El Salvador's population will be directly impacted due to their firsthand experience with Bitcoin as legal tender.
Reasoning
- The ACES Act primarily aims to protect the U.S. financial system from potential risks associated with El Salvador's use of Bitcoin as legal tender.
- For U.S. residents, the impact of this policy will likely be indirect, primarily affecting those involved in cryptocurrency investments or businesses.
- The budget constraints suggest a relatively modest impact at an individual level, focusing on larger financial market impacts rather than everyday consumer consequences.
- Individuals who are heavily involved in the cryptocurrency market may feel the effects most directly, as regulatory adjustments could influence market stability.
- Cryptocurrency enthusiasts may have diverse opinions based on their beliefs in financial systems and the role of currency regulation.
Simulated Interviews
Cryptocurrency Investor (San Francisco, CA)
Age: 32 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I'm glad there's attention on Bitcoin regulations to ensure market stability.
- I worry that over-regulation could stifle the innovation and growth of cryptocurrency.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 6 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Software Developer (Miami, FL)
Age: 27 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- The policy could be a good step if it means greater security for digital transactions.
- I'm concerned it might inhibit progress if too restrictive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Financial Analyst (Charlotte, NC)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- This policy is crucial to prevent potential financial disruptions.
- I'm relieved that the government is taking steps to mitigate risks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Graduate Student (Austin, TX)
Age: 22 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- I'm curious how this policy will influence global economic dynamics.
- It's important to consider how this impacts economies relying heavily on remittances.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 4 |
CEO of Financial Company (New York, NY)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 3/20
Statement of Opinion:
- I support regulatory measures that ensure business and economic safety.
- Too much regulation can hinder the benefits that cryptocurrencies offer.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 3 |
Consultant (Los Angeles, CA)
Age: 39 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- The act is necessary to ensure future stability for businesses.
- We need to balance regulation with opportunity for innovation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
College Professor (Denver, CO)
Age: 47 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- I think this legislation is a prudent move to study crypto impacts.
- There may be unintended consequences for poor nations adopting crypto.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 3 |
Freelance Artist (Seattle, WA)
Age: 29 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 10/20
Statement of Opinion:
- I hope it means safer and smoother transactions if regulated properly.
- I'm not too worried unless it affects how I get paid.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 4 |
Retired (Chicago, IL)
Age: 55 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- Stability in the financial system is always beneficial for people like me.
- Cryptocurrency is not something I've invested in, but I'm concerned about system-wide risks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
IT Manager (Boston, MA)
Age: 41 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 6/20
Statement of Opinion:
- It's good to see policies that manage crypto risks before they become issues.
- I hope it doesn't complicate adoption processes for businesses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 4 |
Cost Estimates
Year 1: $5000000 (Low: $4000000, High: $7500000)
Year 2: $4500000 (Low: $3500000, High: $7000000)
Year 3: $4500000 (Low: $3500000, High: $7000000)
Year 5: $4000000 (Low: $3250000, High: $6500000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Ensuring adequate resources and expertise at the Department of State for robust risk assessment.
- The evolving nature of cryptocurrency regulation and its impact on financial systems globally.
- Potential diplomatic sensitivities related to implementing a U.S.-driven policy affecting a sovereign nation's financial decisions.