The Government will send a bill to Congress to reform the capital market: what are the key points

The Government will send to Congress in the "coming days" a bill to reform the capital market with changes aimed at simplifying regulation, expanding available instruments, strengthening guarantees, and facilitating access to financing. Some of the points were anticipated this morning by the Minister of Deregulation and Transformation, Federico Sturzenegger, at the Chamber of Commerce, during the inauguration of the "Investor Week", where the president of the National Securities Commission (CNV), Roberto Silva, directors of the Central Bank, and actors from the financial system also participated.

The initiative, Sturzenegger assured, was worked on together with the CNV and the Central Bank, and will include modifications to various regimes that currently affect the capital market.

"It is a capital market project that has two main axes: the axis of simplification, deregulation, greater freedom in the assets you can pledge, in the instruments you can use, and how you structure contracts", explained the minister in a speech that reinforced the imprint of his portfolio.

He added the second objective: to strengthen the guarantees used to expand financing alternatives and reduce costs.

What the new capital market law will contain

Some of the planned modifications will be:

• Warrants: deregulation will be deepened, insurance will no longer be mandatory, and the universe of assets that can be used as collateral will be expanded.
• Federal Register of Guarantees: a centralized system will be created, managed by the BCRA, to consult the assets affected by pledges and other guarantees.
• Pledges: it will be allowed to establish second or third pledges without the authorization of the first creditor, and the universe of affected assets will be expanded, including future crops.
• Execution of guarantees: the monopoly that banks currently have over certain execution mechanisms will be eliminated.
• Promissory notes and bills of exchange: the possibilities for using these instruments will be expanded, even linking them to physical assets or production.
• Electronic Credit Invoice for SMEs: intermediaries will be eliminated to facilitate its use and access for SMEs to financing.
• Crowdfunding: the specific regime in force will be eliminated, which, as Sturzenegger explained, has lost functionality.
• Credit cards: it will be allowed for businesses to finance credits originated in transactions with cards without that activity being exclusively channeled through banks.
• Savings and capitalization plans: the specific regulatory regime will be eliminated, and contracts will be governed by the Civil and Commercial Code and Consumer Defense regulations, reducing the intervention of the IGJ. This is a scheme particularly used by automakers.
• Automatic authorizations: reforms that the CNV has already implemented will be incorporated into the Capital Market Law, such as the possibility of carrying out certain issuances without prior approval, with subsequent oversight.
• Negotiable Obligations (ON) denominated in UVA: their issuance will be enabled to expand financing alternatives.

Sturzenegger stated that the project aims to give the "golden touch" to the regulatory transformation process of the capital market.

To conclude, within his presentation, Sturzenegger reiterated that Argentina has a significant volume of savings abroad --- estimated at u$s300 billion --- which, under normal conditions, could be channeled into the local capital market. In this sense, he affirmed that the country has already resolved fiscal and external restrictions and highlighted the growth potential of exports.

In a nod to next year's elections, he added that "next year, with the re-election of President Javier Milei, we will solve the political restriction" and stated that the current capital market is already "being laid the foundations" for its consolidation and expansion.

Reforms in the sector led by the CNV and the response to Alycs' criticisms regarding a new measure

At another moment during the opening of a key week for the industry, Roberto Silva, current president of the National Securities Commission (CNV), pointed out that the strategy of his management sought to combine the simplification of processes with investor protection. "Our goal is to make everything easier, serious, and transparent," he affirmed.

The head of the CNV also announced that they have already advanced on 80% of the regulations that were at the CNV and highlighted that the current management has already issued 181 general resolutions, compared to the historical average of 16 per year.

One of the measures that stood out the most was the automatic authorizations and the reduced time to enter the market. He explained that the goal was to reduce the "time to market", but emphasized that the absence of prior authorization does not eliminate subsequent oversight.

Regarding the current capital market, he added that the market has more than doubled its volume in current terms, although it still represents only about 7% or 8% of GDP, well below other markets in the region.

Finally, he took the opportunity before the present actors to clarify what the objective of General Resolution 1166/2026 was, which generated controversy among the Alycs. This regulation established that transfers become the only authorized modality for receiving and delivering funds between Alycs and their clients, which automatically created an inevitable step through a bank account.

On that topic, which generated market criticism, he assured that he heard "nonsense" in the questioning. "The CNV does not create taxes, it does not have the capacity to raise or lower them, taxes are created by Congress. ARCA is the one that takes care of collection and oversight." He added that there is a regulation that states that "one cannot bypass a payment system by skipping the bank account."

In that line, he emphasized that the regulation is not new and that the CNV tried, "in the face of disvalued conduct," to change the operation of the Alycs. And firmly, he concluded: "The ALYC license is not to evade, nor to avoid controls, nor to promote evasion or avoidance. It is for something else, for the growth of the market."

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