Core Insights - The repeal of a restrictive crypto accounting rule by the SEC in January has spurred institutional crypto adoption in the U.S., and Argentina is now considering a similar regulatory shift [1][4]. Regulatory Changes - In 2022, the Banco Central de Argentina (BCRA) issued Communication A7506, which prohibited financial institutions from engaging with digital assets [2]. - Following the appointment of new leadership by Javier Milei in 2023, the BCRA has adopted a more pro-crypto stance [2][3]. - The BCRA is reportedly drafting new regulations to ease restrictions on banks' participation in cryptocurrencies, indicating a significant policy shift [3][7]. Comparison with U.S. Regulations - The regulatory environment in Argentina mirrors that of the U.S., where a change in government has led to a more accommodating approach towards crypto [4]. - A7506 is noted to be more restrictive than the SEC's Staff Accounting Bulletin 121 (SAB121), which required banks to report digital assets as liabilities [4][5]. Institutional Adoption - Major Wall Street firms, including Citi and State Street, are preparing to offer crypto custody services following the repeal of SAB121, with plans to launch in 2026 [6]. - The anticipated regulatory changes in Argentina are expected to allow banks to offer crypto services, similar to trends observed in the U.S. [7]. Broader Industry Trends - The shift in regulations is part of a broader trend where banks are increasingly integrating crypto into their core business lines, as seen with JPMorgan and Citi's recent initiatives [8]. - The initial focus post-repeal of SAB121 has been on institutional services and investment policy adjustments [9].