The party of Argentine President Javier Milei, La Libertad Avanza (LLA), has won the 2025 midterm elections handily. But the crypto industry doesn’t necessarily have cause for celebration.
Milei endeared himself to many in the crypto space with his pro-crypto rhetoric. He has called central banks “a scam” and said that Bitcoin (BTC) was “the natural reaction against the central bank scammers.”
The economist-turned-president has publicly stated that cryptocurrencies can address some of Argentina’s economic problems. He said, “There will be free competition of currencies, so if you want to use Bitcoin, there will be no problems.”
But despite his unambiguously pro-crypto rhetoric, Milei’s actual progress on a pro-crypto agenda is limited.
Milei’s crypto rhetoric stalls
In 2019, Milei was a television personality and author and made an appearance at the Buenos Aires Comic-Con in the costume of “General Ancap.” The anarcho-capitalist “superhero,” who derided Keynesian economics and collectivism, embodied an irreverence that has defined his later political career.
From playing a libertarian superhero to gifting Elon Musk a chainsaw of austerity, Milei’s controversial economic policies have endeared him to many in the crypto industry.
Leading up to his 2023 victory and soon thereafter, Milei has also made several pro-crypto comments. But when it came to policy, he hasn’t followed through.
When the legislature was considering the Law of Bases and Starting Points for the Freedom of Argentines, it decided to omit a provision for crypto investors. Legislators cut a portion of the omnibus bill that would levy a one-time regularization tax on cryptocurrencies. This provision was intended to kickstart Milei’s presidency, but the minister of interior said they scrapped the amendment because it would delay the bill.
In March, the government also introduced a regulatory framework for virtual asset service providers (VASP). According to global law firm DLA Piper, the National Securities Commission had previously taken a “lenient approach, not requiring registration or enforcing securities laws on crypto issuers, exchanges and crypto providers.”
The passage of Law N°27,739 on March 15 changed that. VASPs must now report and monitor illicit activity under Anti-Money Laundering measures.
There also appears to be a knowledge gap. Carlos Maslatón, an Argentine financial analyst, Bitcoin maximalist and lawyer, said he spoke with Milei “extensively about Bitcoin in 2013 or 2014, and he attentively listened to what I had to say. But the truth is, I don’t think he was able to grasp its essence totally.”
Ramiro Marra, a current member of the Buenos Aires city government and a former member of LLA, said he has had difficulty finding anyone in government with a solid understanding of crypto.
“I can’t find anyone who knows anything about [crypto]. Or rather, almost all of them are inexperienced, and I hope they don’t discuss any kind of law on this topic because they have no idea. That’s why I think talking about regulations is a very serious risk, because you put it in the hands of people who are completely ignorant,” he said.
Milei remains, at the very least, nominally open to the idea of cryptocurrencies, but even this is complicated by the LIBRA memecoin scandal.
Midterm gains amid memecoin scandal and Trump’s bailout
In February, Milei became entangled in a scandal surrounding the pump and dump of a memecoin called “Libra.”
Initially advertised as a means to fund Argentine entrepreneurs and spur economic development, the token’s price skyrocketed and then crashed after Milei posted about the token on X.
Related: The Milei ‘Libragate’ debacle took months to develop, days to unfold
The ensuing scandal, which even touched Barstool Sports founder David Portnoy, sparked official investigations into Milei’s involvement. In April, the Chamber of Deputies, the lower house of Argentina’s legislature, approved a probe into Libra, although it did not directly implicate Milei.
The Union for the Homeland (UxP), the main opposition group in Argentina, called for articles of impeachment to be opened against Milei. Their request was declined.
By May 20, Milei dissolved the investigative task force after it supposedly completed its mandate and found no wrongdoing by the president. Milei publicly denied any fault, saying he didn’t promote the project but simply “shared” it. He also noted that most investors who lost money were Chinese or American. “Did Argentinians lose money? Four or five at most,” he said.
In addition to scandal, Milei has had to contend with limited policy success. While he has been able to reduce inflation, Argentines have taken to the streets to protest his austerity policies. Police have cracked down in return, and human rights organizations are concerned about growing repression.
LLA’s victory was all the…
cointelegraph.com