On October 27, 2025, Argentina witnessed a political earthquake as President Javier Milei’s La Libertad Avanza (LLA) party clinched a commanding victory in the country’s midterm legislative elections. With more than 40% of the national vote—official tallies place the figure at 40.68%—Milei’s party not only solidified its grip on Congress but also dramatically shifted the country’s political and economic trajectory. Yet, this triumph arrives under the shadow of the LIBRA cryptocurrency scandal, casting uncertainty over the president’s future and Argentina’s budding crypto landscape.
The election outcome was nothing short of remarkable. As reported by La Nación, La Libertad Avanza’s surge was especially notable in Buenos Aires province, a region long considered a bastion of Peronist power. This victory, coupled with strong performances in Mendoza, Córdoba, and Santa Fe, marked a decisive turnaround from the September 2025 provincial elections, when Milei’s candidates suffered stinging defeats. The Peronist alliance, once dominant, trailed behind with just 31.6% of the vote—a stark indicator of Argentina’s shifting political winds.
LLA’s electoral success translated into real power: the party tripled its representation in Congress, now holding 101 out of 257 seats in the lower house (up from 37) and 20 in the Senate (up from six). According to Finway, this newfound strength is expected to bolster Milei’s reformist agenda, with his supporters touting it as a mandate to continue deregulating the economy, cutting government spending, and advancing market-friendly policies. As Milei declared to his supporters, "During the first two years, we avoided falling off the cliff. In the next two years, we will continue the reformist path to make Argentina great again."
Since taking office in December 2023, Milei, a former economist, has wasted no time in implementing bold reforms. Inflation, which had soared to nearly 290% in April 2024, has fallen dramatically under his watch—reaching 31.8% by September 2025, according to La Nación. But these gains have come with a price: higher living costs, unemployment spikes, and the scaling back of subsidies on essentials like electricity and transport. Still, for many Argentines battered by years of economic instability, the promise of a new direction has proved compelling.
Central to Milei’s vision is Argentina’s embrace of digital assets. In December 2023, his government legalized the use of Bitcoin and other cryptocurrencies in private contracts—a move that formalized crypto transactions and signaled Argentina’s openness to the digital economy. The following year, comprehensive regulations for Virtual Asset Service Providers (VASPs) were introduced, requiring registration with the National Securities Commission (CNV) and compliance with anti-money laundering and cybersecurity standards. Cryptocurrencies are now legally recognized for transactions (though not as legal tender), and the CNV has authorized trading of U.S. Bitcoin and Ethereum spot ETFs via Argentina’s CEDEAR program, ending a six-year ban.
This regulatory clarity has fueled a crypto boom. According to a 2025 Chainalysis report cited by La Nación, Argentina now ranks 20th worldwide in crypto adoption, second only to Brazil in Latin America, with $93.9 billion in transaction volume between mid-2023 and mid-2024. Stablecoins—especially USD-pegged tokens like Tether’s USDT—account for over 60% of transactions, as Argentines seek to shield their savings from inflation. Major international exchanges, including Coinbase and Bybit, have expanded into the market, attracted by Argentina’s regulatory environment and growing user base.
Yet, Milei’s crypto-friendly reputation has been tarnished by the LIBRA token scandal. The controversy erupted in February 2025, when Milei mentioned the meme coin on social media platform X (formerly Twitter). The token’s market capitalization skyrocketed to $4.6 billion before collapsing by 94% within hours, triggering allegations of market manipulation and insider trading. Investors suffered heavy losses, and the fallout was swift: Milei’s approval rating, once as high as 47.3% in November 2024, fell to 41.6% by March 2025, with more than 63% of Argentines viewing him negatively, according to Zuban Córdoba polling cited by multiple outlets.
While Milei has consistently denied any personal interest in LIBRA—insisting he merely "shared the news"—the incident continues to dog his administration. Argentina’s anti-corruption agency ultimately cleared him of wrongdoing, but public trust remains shaken. The government’s decision to dissolve the investigative task force after it declared its mandate complete drew sharp criticism from opposition lawmakers, who accused Milei of trying to "bury the controversy." Legal scrutiny has not been limited to Argentina: a U.S. court recently unblocked $57.6 million in USDC related to the LIBRA collapse, and a U.S. judge suggested that Milei and his associates may control the token’s assets. In October 2025, an Argentine prosecutor ordered forensic investigations into the phones of Milei and his closest advisors, further intensifying the pressure.
Despite the turbulence, Milei’s administration presses on with its crypto liberalization agenda. In June 2024, the president publicly endorsed an "open market" approach, allowing Bitcoin to compete freely alongside the Argentine peso. This stance echoes the views of former Foreign Affairs Minister Diana Mondino, who confirmed that crypto-based contracts are legally recognized under Milei’s deregulation decree. In December 2024, Argentina and El Salvador signed a mutual cooperation agreement to strengthen blockchain regulatory frameworks and share expertise—a sign that Argentina aims to position itself as a regional digital asset hub.
Argentina’s economic stabilization has been aided by a $20 billion currency swap agreement with the United States, which has helped shore up foreign reserves and partially stabilize the financial system. Investors, once jittery about Milei’s radical proposals, have responded positively to his strengthened position in Congress. The Argentine peso even posted gains in crypto trading markets following the midterm results, reflecting renewed confidence in the country’s direction.
Still, the road ahead is fraught with challenges. The LIBRA scandal has left a lasting mark on Milei’s credibility, and public skepticism lingers despite his exoneration. As the 2027 presidential election approaches, the president faces the daunting task of maintaining momentum for his reforms while convincing Argentines that his administration can deliver both economic stability and transparency. The coming months will test whether Milei can balance bold innovation with the need to restore trust—a balancing act that may well define Argentina’s future.
With Congress firmly under his party’s control, Milei has a rare opportunity to reshape Argentina’s economy and digital landscape. Whether he can seize it, amid controversy and shifting public sentiment, remains to be seen.
