Argentina Securities Commission launches consultation to broaden tokenization under automatic public offer regimes and extend sandbox to 31 December 2027

The Argentina Securities Commission (CNV) has opened a public consultation under General Resolution No. 1137 on draft changes that would widen the digital representation regime for publicly offered negotiable securities and extend the regulatory sandbox. The proposal would allow tokenization for securities issued under the CNV's automatic authorization regimes, except those applicable to open-ended mutual funds, and would prolong the sandbox through 31 December 2027. At present, the tokenization regime covers certain instruments, including shares, corporate bonds, debt securities and participation certificates in financial trusts, when issued under selected automatic public offer regimes, as well as units of closed-end credit mutual funds. The reform would expand eligibility to negotiable securities issued under any automatic authorization regime, including the low-impact regime and the medium impact expanded regime. For closed-end mutual funds, digital representation would no longer be limited to credit funds and would extend to all closed-end mutual funds that can issue under automatic public offering authorization. The draft also clarifies that issuers using low-impact automatic public offer regimes could tokenize issuances if they voluntarily prepare a prospectus and obtain CNV authorization for digital representation, even though a prospectus is not otherwise required under those regimes.