The Argentine government is pushing to relax capital markets regulations. A draft of the “Deregulation Bill,” prepared by Economy Minister Federico Sturzenegger, includes provisions allowing mutual investment funds (FCI) to invest in Bitcoin and other cryptocurrencies. It also authorizes securities such as stocks and transferable bonds to be issued, held, and traded on crypto networks through a “crypto timestamping” mechanism. The bill is awaiting submission to Congress after President Javier Milei signs it.
New rules for FCI investing in crypto assets: both open-ended and closed-ended FCIs can allocate virtual assets
Under the draft provisions, as long as it complies with each fund’s investment policy, the assets of mutual funds (including both open-ended and closed-ended funds) may be invested in virtual assets. At present, Argentine regulations do not explicitly allow such investments. The draft also establishes “qualified investor” funds, which are not subject to standard diversification investment limits.
A market participant interviewed by The Horn (who requested anonymity) said they support these reforms, arguing that crypto assets “are investment assets” and that it is a good thing for funds to allocate capital to crypto assets. However, they also emphasized that the relevant operations will still be subject to regulations approved by the CNV and will not allow unlimited purchases of any crypto assets.
Reassigning Argentina’s regulatory framework
The draft redefines the responsibilities of Argentina’s two major regulators. CNV (National Securities Commission) oversight of mutual funds will be limited to “legality and technical solvency capability controls,” and will no longer include assessments of the “opportunity, value, and suitability” of the funds’ investments. The CNV currently regulates virtual asset service providers, but does not regulate virtual assets themselves. The central bank (BCRA) will gain a new role: becoming the exclusive regulator for infrastructure related to the registration or transfer of cryptocurrencies and tokenized assets. However, that responsibility is limited to how these infrastructures relate to the peso or foreign-currency payment systems.
Authorization for tokenized stocks and bonds
The draft explicitly authorizes stocks, transferable bonds, and other securities to be issued, held, and traded on crypto networks through a “crypto timestamping” mechanism. This mechanism provides specific date records for the relevant operations. Legal counsel Gilberto Santamaría (Estudio Santamaría), speaking to iProUp, said the initiative represents a “groundbreaking advancement,” because it integrates crypto assets and strengthens tokenization.
The earlier version of the draft mainly focused on mutual funds. This explicit authorization for tokenized stocks and bonds makes the scope of the draft more complete.
FAQ
What is the current legislative status of Argentina’s “Deregulation Bill” draft?
The bill was prepared by Economy Minister Federico Sturzenegger, and according to a report by La Nación, the text is divided into 11 chapters. It is still awaiting submission to Congress after President Javier Milei signs it. Official sources said the “project is still underway,” and no opinion will be issued before the final draft is submitted to Congress. The specific legislative timeline will depend on official announcements by the Argentine government.
What new authorizations does Argentina’s draft provide for mutual funds (FCI) investing in crypto?
Under the draft, open-ended and closed-ended mutual funds (FCI) may allocate assets to virtual assets according to their respective investment policies. The draft also establishes “qualified investor” funds, which are not subject to standard diversification limits. Operations must still comply with regulations approved by the CNV and will not allow unlimited purchases of any crypto assets.
How does the draft reallocate CNV and central bank regulatory responsibilities?
Under the draft, CNV supervision of mutual funds will be narrowed to “legality and technical solvency capability control,” and will no longer assess the opportunity or suitability of their investments. The central bank will become the exclusive regulatory authority for infrastructure involved in the registration or transfer of cryptocurrencies and tokenized assets, but only within the scope related to peso or foreign-currency payment systems.
