Argentina’s Deregulation Minister Federico Sturzenegger has put forward a new bill aimed at overhauling the country’s capital market rules. The proposal would let investment funds put money into digital assets and allow companies to issue securities using decentralized technology. It also seeks to give smart contracts full legal validity.
What the bill would change
The legislation targets what the minister called outdated national market regulations. Under the current framework, investment funds are largely restricted to traditional assets like stocks and bonds. The new law would open the door to digital assets, including cryptocurrencies and tokenized securities. It would also permit the issuance of securities through decentralized platforms, moving away from centralized exchanges and clearinghouses.
Sturzenegger said the changes are meant to modernize Argentina’s financial system and make it more competitive. The bill does not specify which digital assets would be eligible, leaving that to future regulatory decisions.
Smart contracts get legal standing
Another key piece of the proposal is the legal recognition of smart contracts. These are self-executing contracts with terms written directly into code. Under the new law, they would have the same binding effect as traditional paper contracts. That could reduce the need for intermediaries and speed up transactions in areas like real estate, insurance, and supply chain finance.
The bill does not define the technical standards for smart contracts, but it sets a legal framework for their use. Courts would treat them as valid agreements if they meet basic contract law requirements.
Why now?
Argentina has been grappling with high inflation and a volatile currency for years. The government has already taken steps to encourage digital asset adoption, including a 2022 law that allowed banks to offer crypto services. This new proposal goes further by integrating digital assets into the broader capital market structure.
Sturzenegger’s office said the current rules were written before blockchain technology existed and need to be updated. The bill is part of a broader deregulation push under President Javier Milei, who has promised to reduce state control over the economy.
The proposal now heads to Congress, where it will face debate. Its fate is uncertain, but the government has made it a priority.
