Argentina bill would let funds hold crypto, legalize tokenization

Deregulation Minister Federico Sturzenegger has drafted a Deregulation Bill that would allow investment funds to include digital assets in their portfolios, give legal validity to smart contracts and permit tokenization of negotiable securities.

The draft says funds may invest in digital assets when such investments match the fund’s rules and after the national securities regulator, the Comisión Nacional de Valores (CNV), issues implementing regulations. Government advisers estimate opening funds to crypto could create demand worth billions, but the draft does not give precise figures.

The proposal authorizes full tokenization of negotiable securities, specifying issuance, custody, transfer and sale using distributed ledger technology. The draft states ownership and transfers could be recorded on ledgers rather than through traditional clearing systems.

Smart contracts would receive explicit legal recognition so agreements executed on blockchains would carry the same legal effects as written contracts. The text notes that automated outcomes such as scheduled payments, redemptions and certain foreclosures could occur without a separate court order when contract conditions are met.

Digital assets would be eligible as collateral under the draft, allowing loans to be secured with bitcoin and other tokens.

If enacted, the CNV would be required to issue rules on risk management, disclosure and custody for funds holding digital assets, and technical standards for token issuance and smart-contract use.

An unnamed official involved in drafting the text commented, “Today, crypto-assets are investment assets; it is a good thing to allow funds to invest in them-subject, of course, to regulations that the CNV must approve. It is not a case of just anyone going out to buy Bitcoin, nor is it just any crypto-asset.”

The draft was prepared by Sturzenegger and may be amended before formal submission to Congress. The government presents the proposal as an update to market rules rather than a loosening of financial oversight.

Argentina has alternated between strict currency and capital controls and periodic liberalizations. The bill is part of a package of regulatory and policy changes under President Javier Milei’s administration. Supporters say the changes could attract investors and improve market efficiency, and critics plan to press for safeguards against market manipulation, custody failures and fraud.