When the Securities and Exchange Commission (SEC) axed a contentious crypto accounting rule in January, it helped catalyze a wave of institutional crypto adoption in the U.S.
Now, as Argentina’s central bank considers a similar change, the Latin American nation is on the cusp of its own SAB121 moment.
Argentina Considers Easing Crypto Restrictions
In 2022, the Banco Central de Argentina (BCRA) issued Communication A7506 , prohibiting financial institutions from “carrying out or facilitating their clients’ operations with digital assets.”
But after Javier Milei appointed new leadership in 2023, the central bank shifted to a more pro-crypto stance.
BCRA President Santiago Bausili has spoken about the need for Argentina to embrace new financial technologies, arguing that banks and fintech should operate on a level playing field.
Citing central bank insiders, La Nación reported on Dec. 5 that the BCRA is drafting a new regulation to ease restrictions on banks’ participation in cryptocurrencies.
Argentina’s SAB121 Moment
The regulatory situation in Argentina closely resembles that in the U.S.
In both countries, a change of government enacted a change of course for crypto, as previously hostile administrations were replaced by more accommodating ones.
Although they had a similar effect, A7506 is even more restrictive than the SEC’s Staff Accounting Bulletin 121 (SAB121).
SAB121 restricted crypto adoption by requiring American banks to report digital assets held on behalf of customers as liabilities.
A7506 amounts to an outright ban on financial institutions offering trading or custody services.
Banks Offering Crypto Services
Since SAB121 was repealed, major Wall Street firms have moved to offer crypto custody, including Citi and State Street, which are preparing to launch the service in 2026.
Banks’ custody moves are part of a broader embrace of crypto.
From JPMorgan accepting crypto ETFs as loan collateral to Citi’s stablecoin investments, banks that once kept crypto at arm’s length are now building digital assets into their core business lines.
Amid changing regulatory winds, crypto-curious banks in the U.S. and Argentina can draw inspiration from Europe, where more than a dozen banks offer crypto trading to retail customers.
Initial moves following the repeal of SAB121 have been focused on institutional services and investment policy shifts.
But the sector is fast moving toward a more broad integration of crypto services.
