Argentina's CNV Suspends Argt Peso-Linked Stablecoin, Rules Token a Regulated Security

Argentina's National Securities Commission (CNV) on March 12 ordered the suspension of argt, a stablecoin pegged to the Argentine peso, after ruling the token qualifies as a security under capital markets law. The regulator said argt, issued by Twin Finance and listed on exchange Belo, constitutes an investment contract because it offered up to 32% APR for holding the asset, subjecting it to public offering rules for negotiable securities. The CNV stated that assets involving an investment of money in a joint venture with profit expectations primarily from third-party efforts can be classified as securities, and Twin Finance must halt all activities, including securities offerings, without CNV authorization. The decision sets a precedent in Argentina by linking reward-bearing stablecoins to securities classification, while similar debates are ongoing in the U.S., where banks argue such products could drive deposit outflows and disrupt their credit intermediation business models.