Argentine President Javier Milei's party, the La Libertad Avanza (LLA), easily won the 2025 midterm elections. However, the cryptocurrency industry may not have much reason to celebrate.

Milei has garnered significant attention in the industry for his public support of cryptocurrencies. He has referred to central banks as a "scam" and stated that Bitcoin is a "natural response to the fraud of central banks."

The economist-turned-president has openly expressed that cryptocurrencies could help alleviate some of Argentina's economic challenges. He said, "There will be free competition of currencies, so if you want to use Bitcoin, there is no problem."

However, despite Milei's clear stance, progress in promoting related policies has been limited.

In 2019, Milei was still a television personality and writer, appearing at the Buenos Aires Anime Festival dressed as "General Ancap." This anarcho-capitalist "superhero" criticized Keynesianism and collectivism, reflecting his later unrestrained style in politics.

From playing a liberal superhero to gifting Elon Musk a chainsaw for austerity policies, Milei's controversial economic policies have earned him many fans in the crypto industry.

Before and after his victory in 2023, Milei made several statements supporting cryptocurrencies. However, he has not delivered on his promises in terms of policy.

When the legislature considered the "Law on the Foundations and Starting Point of Freedom for Argentines," it decided to omit provisions for cryptocurrency investors. Legislators removed a section of the bill that would impose a one-time regularization tax on cryptocurrencies. This provision was intended to kickstart Milei's presidential term, but the interior minister stated they canceled the amendment because it would delay the bill's passage.

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 "lax attitude, not requiring registration or enforcing securities laws on crypto issuers, exchanges, and providers."

The law No. 27,739 passed on March 15 changed that. VASPs must now report and monitor illegal activities under anti-money laundering measures.

There also seems to be a knowledge gap. Argentine financial analyst, Bitcoin extremist, and lawyer Carlos Maslaton stated that he had "extensive discussions about Bitcoin" with Milei in 2013 or 2014, and that Milei listened to his opinions seriously. "But the fact is, I think he has failed to fully understand its essence."

Current member of the Buenos Aires city government and former LLA member Ramiro Marra pointed out that it is difficult to find people who truly understand crypto. "I can't find anyone who understands crypto. Or rather, they are almost all inexperienced, and I hope they don't discuss any relevant laws because they have no clue. Therefore, I think discussing regulation is a very serious risk because you are handing it over to a group of people who completely do not understand."

At least for now, Milei still nominally holds an open attitude towards cryptocurrencies, but this has become complicated due to the LIBRA meme coin scandal.

In February of this year, Milei was embroiled in a scandal surrounding a pump-and-dump scheme involving a meme coin called "Libra."

Initially, the token was marketed as supporting Argentine entrepreneurship and promoting economic development. After Milei posted related content on the X platform, its price experienced extreme volatility—first skyrocketing and then plummeting.

The subsequent scandal even involved Barstool Sports founder David Portnoy, prompting an official investigation into whether Milei was involved. In April, the Argentine House of Representatives approved an investigation into Libra, although it did not directly accuse Milei himself.

The main opposition group, the Unión por la Patria (UxP), called for impeachment proceedings against Milei, but the request was rejected.

By May 20, after the investigative team reportedly completed its task and found no wrongdoing by the president, Milei announced the dissolution of the investigative team. Milei publicly denied any wrongdoing, stating that he was merely "sharing" the project, not promoting it. He also pointed out that most of the losing investors were Chinese or Americans. "Did Argentines lose money? At most four or five people," he noted.

Aside from the scandal, the effectiveness of policies has also been limited. While he successfully reduced the inflation rate, the public took to the streets to protest against austerity measures. The police responded with forceful suppression, and human rights organizations expressed concerns about increasing repression.

Given the low support rates before the election, the LLA's victory was even more surprising.

Gustavo Cordoba, head of the Argentine polling company Zuban Cordoba, believes that many people may have been willing to give the LLA another chance to avoid another economic crisis. "Many people are willing to give the government another chance… We will see how long Argentine society can tolerate this. But this victory is undoubtedly indisputable."

Gonzalo Roca, the main candidate for the LLA in the Córdoba region, pointed out, "We cannot solve problems that have accumulated over a century in two years." He added that the country is on the "right path."

Some have pointed out that U.S. President Trump's $40 billion economic stimulus plan may have influenced the election results. Trump had explicitly stated that the plan would be implemented based on the LLA's midterm election performance.

Trump: "In Argentina, I want to congratulate the victor. And he had a lot of help from us." pic.twitter.com/vG3pamNuEe

Peronist Itai Hagman called this an "obvious interference in another country's internal affairs." Before the vote, Hagman stated that the Argentine people would "defend their sovereignty and democracy. They will not vote based on the words of another country's president but will choose based on their own interests and will."

According to Hagman, this prediction fell flat.

With the recent string of victories for the LLA, Milei has broader authorization to advance his political agenda. Whether cryptocurrencies will be part of that remains to be seen.

Related: As the probability of a Fed rate cut surpasses 98%, Bitcoin (BTC) prices begin to break through the $112,000 mark.

Original: “Milei's party wins midterm elections, but the cryptocurrency industry does not celebrate”

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