‘Crypto President’ Javier Milei Scores Shock Midterm Win: What’s Next For Crypto In Argentina?

What Happened

The legislative win also eases investor fears that Milei’s market overhaul could stall.

Investors see the strengthened position in Congress as crucial for pushing through Milei’s austerity and tax reform agenda, which has been met with both praise and protest at home.

The following year, his government introduced comprehensive regulations for Virtual Asset Service Providers (VASPs), requiring registration with the National Securities Commission (CNV) and compliance with anti-money laundering and cybersecurity standards.

Market Context

Argentine assets rallied following the results, with the peso posting gains in crypto trading markets on Sunday.

The CNV has also authorized trading of U.S. exchange-traded funds (ETFs), including Bitcoin and Ethereum spot ETFs, through Argentina’s CEDEAR program, ending a six-year prohibition.

Argentina’s growing openness to crypto has made it one of the most active markets in Latin America.

A 2025 report by Chainalysis ranked the country 20th globally for crypto adoption and second regionally behind Brazil, with $93.9 billion in transaction volume between mid-2023 and mid-2024.

Earlier this year, the president was embroiled in the LIBRA token scandal after mentioning the project in an X post, which led to a 94% price collapse within hours.

The token’s market capitalization had briefly surged to $4.6 billion before crashing, prompting allegations of market manipulation and insider trading. Although Argentina’s anti-corruption watchdog later cleared Milei of wrongdoing, public trust took a hit.

Why It Matters

Argentine President Javier Milei’s pro-crypto party, La Libertad Avanza, has scored a surprise victory in the country’s midterm elections, strengthening his control in Congress and reigniting debate over Argentina’s future economic direction and its deepening embrace of digital assets.

According to local outlet La Nación, Milei’s party secured 40.68% of the national vote, winning key regions including Buenos Aires province, long considered a Peronist stronghold.

Details

The result marks a major turnaround from September’s provincial elections, when the Peronists had defeated Milei’s candidates by a wide margin.

With more than 99% of votes counted, La Libertad Avanza has tripled its representation in Congress, now holding 101 seats in the lower house, up from 37, and 20 in the Senate, compared to six previously.

The victory cements Milei’s influence ahead of the October 2027 presidential election, positioning him once again as the frontrunner.

How Milei’s Midterm Win Redefines Argentina’s Future

Speaking to supporters after the win, Milei called the result a “turning point” and declared that Argentina had “left decadence behind and opted for progress.”

Since taking office in December 2023, Milei, a former economist, has focused on deregulation, fiscal tightening, and reducing state intervention.

Inflation, which had soared to nearly 290% in April 2024, has fallen dramatically under his administration, dropping to 31.8% in September 2025.

While these measures have helped stabilize the peso, they’ve also led to higher living costs, unemployment, and reduced subsidies on essentials like electricity and transport.

Milei’s pro-crypto policies remain a defining feature of his presidency. In December 2023, Argentina legalized the use of Bitcoin and other cryptocurrencies in private contracts, marking a major step in formalizing crypto transactions.

Under the new framework, cryptocurrencies are legally recognized for transactions but do not hold legal tender status.

Argentina’s Crypto Boom Overshadowed by Milei’s LIBRA Controversy

Stablecoins, especially USD-pegged assets like Tether’s USDT, account for over 60% of crypto transactions, reflecting the public’s ongoing efforts to hedge against inflation.

Despite these milestones, Milei’s relationship with the crypto sector has been clouded by controversy.