Venezuela’s “Petro” Crypto Causes US Senators to Draft Humanitarian Relief, Reconstruction and Rule Bill

The United States Senate has formed a bipartisan group to push for tighter sanctions against Venezuela’s state-backed crypto, the Petro. Known as Venezuela Humanitarian Relief, Reconstruction and Rule Law Act of 2018, this new law covers a vast range of areas related to the country, too, like humanitarian aid and supporting migrants, along with “restoring democracy”.

This bill was created by Senators Bob Mendendez, Marco Rubio, Bill Nelson, John Cornyn, Dick Durbin, David Perdue, Ben Cardin, Ted Cruz, Tim Kaine, Michael Bennet and Patrick Leahy and it includes an executive order signed by Donald Trump to impose sanctions on Venezuela’s national crypto.

Nicolas Maduro, president of Venezuela, has recently affirmed that the token will be out in November and will be listed in international exchanges, but the Petro is currently full of uncertainty as people are still not very sure about it and it has even drawn some criticism and condemnation from people in the industry.

The bill takes the executive order to the next level by asking to forbid American citizens to provide “software” for the Venezuelan government as part of the efforts from the government to launch the upcoming token.

By the bill, any transaction made within the U. S. or by any citizen of the country that could provide financially or provide software for the Petro would the prohibited and against the law if the bill is approved by the U. S. Senate.

Bill Also Wants To Understand How Cryptos Affect US Sanctions Over The World

According to a section of the bill, there is a section that calls for the impact of cryptocurrencies on the sanctions made by the U. S. in different countries around the world. The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) will submit reports for the commission in case the bill is approved.

The reports should be about how countries are actually effectively using cryptos to evade sanctions and for recommending a new legislation and regulatory measures that could be used to stop these efforts or the indirect use of these products and services using technology from the country.

The Launch Of Petro

Petro had a rocky story so far as the Venezuelan government affirms that the token is backed by oil of the country and intend to use it worldwide but it has not provided much proof that it will do everything that it claims.

With the U. S. Senate as an enemy, it is very unlikely that the Petro will have a smoother launch than its story so far. To know more about this crypto, follow our blog and read our updates.