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.

Milei as General Ancap in 2019. Source: Dutch Libertarian

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 more surprising, given his low approval ratings ahead of the elections.

Three separate polls had Milei’s approval ratings around or below 40%. Source: AS/COA

Gustavo Cordoba, director of the Argentine polling firm Zuban Cordoba, said Argentines may have been motivated to give LLA a second chance and wished to avoid another economic crisis.

“Many people were willing to give the government another chance ... We’ll see how much time Argentine society gives the Argentine government. But the triumph is unobjectionable, unquestionable,” he said.

Gonzalo Roca, the LLA’s main candidate in Cordoba, said, “We cannot solve all the problems that the country has had for 100 years in two years.” He added that the country was on the “right path.”

Some noted the possible effect that US President Donald Trump’s $40-billion economic stimulus package could have on the elections. Trump very publicly made the package conditional on the LLA’s performance in the midterms.

Peronist Itai Hagman called it “clear interference in the internal affairs of another country.” Ahead of the vote, Hagman said Argentines would “defend their sovereignty and their democracy. They will not vote based on what the president of another country tells them, but on their own interests and will.”

Whether voters chose LLA to avoid another shakeup in the government or as a means to ensure the US lifeline wasn’t cut, Hagman’s prediction was wrong.

With the recent LLA victories, Milei has a broader mandate to effect his political agenda. Whether crypto is part of that remains to be seen.

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