Argentine fintech groups had welcomed the possibility that, for the first time, workers could deposit their salaries into virtual wallets. However, lawmakers removed the provision, a move widely seen as favoring traditional banking interests.

During negotiations to secure broader support for the bill, President Javier Milei’s party agreed to exclude the article, despite polls indicating that a large majority of Argentines prefer the freedom to choose where their salaries are deposited.

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Distrust In Banks Drives Wallet Adoption

Argentine law today stipulates that workers must deposit their salaries into traditional bank accounts. Despite that law, digital wallet adoption in Argentina has soared over the past few decades. 

In part, that growth reflects limited access to banking. A 2022 Central Bank survey found that only 47% of Argentines had a bank account, a gap largely driven by longstanding distrust of traditional systems.

Decades of financial instability, including the 2001 “corralito” deposit freeze, persistent inflation, and repeated restrictions on access to funds, have eroded public trust in banks and accelerated a shift toward cash and dollar-denominated savings.

In response, fintech-run digital wallets, operated by non-bank payment service providers, have expanded access to financial services across Argentina.

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Platforms such as Mercado Pago, Modo, Ualá, and Lemon now rank among the most widely used. Many users without access to traditional bank accounts rely on these apps as their first point of entry into the formal digital financial system.

That’s why fintech leaders welcomed a provision that would have allowed Argentines to deposit their salaries directly into virtual wallets. However, the article was cut out of the proposed labor reform before it was even debated in Congress.

“The exclusion of Article 35 from the labor reform eliminated the possibility for Argentinians to freely choose where to receive their salary. In practice, the obligation to channel salaries through traditional banks was maintained, following strong pressure from the sector,” Maximiliano Raimondi, CFO of Lemon told BeInCrypto. “Governing involves negotiation, but it’s paradoxical that in a context where economic freedom is a central tenet, there has been a setback on a point that expanded a concrete freedom.”

That setback followed an intense lobbying effort by Argentina’s banking sector, which moved quickly to block the proposal.

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Political Trade Off Favors Banks

Banking associations sent letters to key senators this week outlining their objections to allowing salary deposits into digital wallets.

They argued that digital wallets lack adequate regulation, pose potential systemic risks, and could deepen financial exclusion.

“They do not have a regulatory, prudential or supervisory framework equivalent to that of banks and their approval would generate legal, financial, asset and systemic risks that would directly affect workers and the functioning of the financial system,” said Banco Provincia, a leading Argentine bank, in a statement. 

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Fintech organizations pushed back, arguing that these claims were false. 

“All Payment Service Providers (PSPs) are regulated and supervised by the Central Bank of Argentina (BCRA)… digital wallets were the gateway to financial services for millions of people who were able to open a virtual account easily and free of charge, and access better financial solutions,” Lemon said in a statement.

A recent study by consulting firm Isonomía also found that 9 out of 10 Argentines wanted the option to choose where to deposit their salaries. The tendency was even stronger among independent workers and those who work in the informal sector. The report also revealed that 75% of Argentines already use digital wallets daily.

Ultimately, the banking sector prevailed before the bill reached a Senate vote. According to reports, the government removed the provision to avoid straining relations with banks and to improve the bill’s chances of securing final approval.

TLDR

• 21Shares has expanded its partnership with BitGo to include custody and staking services for its crypto ETPs.
• BitGo will offer regulated custody, trading, execution services, and integrated staking infrastructure for 21Shares’ products.
• The partnership will support 21Shares’ US exchange-traded funds and global crypto ETPs across both the US and Europe.
• BitGo’s services will be delivered through its OCC-approved trust bank in the US and MiCA-licensed operations in Europe.
• 21Shares manages over $5.4 billion in assets across 59 exchange-traded products listed on 13 global exchanges.

21Shares has announced an expansion of its partnership with BitGo to enhance its custody and staking services. The collaboration will support 21Shares’ crypto exchange-traded products (ETPs) across the United States and Europe. BitGo will provide regulated custody, trading, execution services, and integrated staking infrastructure for these products.

This agreement allows 21Shares to offer investors seamless access to its US exchange-traded funds (ETFs) and global ETPs. BitGo will also provide liquidity across various electronic and over-the-counter markets.

The services will be offered through BitGo’s regulated entities in both the US and Europe. This includes the federally chartered trust bank approved by the Office of the Comptroller of the Currency (OCC) and MiCA-licensed operations authorized by Germany’s Federal Financial Supervisory Authority.

BitGo to Support 21Shares’ US and Global ETPs

The expanded partnership will enable BitGo to offer a range of services that support 21Shares’ exchange-traded products. BitGo’s services will include both custody and staking solutions for 21Shares’ clients. With a presence in the US and Europe, BitGo’s platform offers strong compliance with regulatory standards. This includes its OCC-approved US trust bank and MiCA-licensed European operations.

21Shares, a subsidiary of FalconX, is one of the world’s largest crypto ETP issuers. As of February 11, the company manages over $5.4 billion in assets across 59 products listed on 13 exchanges. This move marks another milestone in BitGo’s ongoing efforts to provide institutional-grade services to crypto investors.

21Shares Benefits from BitGo’s Custody and Staking Infrastructure

The partnership will also enhance 21Shares’ ability to tap into the growing demand for yield-generating crypto infrastructure. Staking services have become a key feature for institutional investors seeking enhanced returns from their crypto holdings. BitGo’s fully regulated framework will offer these investors access to secure custody and staking services.

This move comes just weeks after BitGo began trading on the New York Stock Exchange under the ticker BTGO. The crypto industry has seen a rise in staking services, with platforms like Coinbase and Anchorage Digital also expanding their staking offerings. The growing interest in liquid staking, which allows users to stake while maintaining liquidity, further supports the demand for BitGo’s services.

TLDR

• SEC Chair Paul Atkins is under scrutiny for pausing the case against Justin Sun.
• Democratic lawmakers question whether political ties influence the SEC’s enforcement decisions.
• The SEC’s overall legal actions dropped by 30% in 2025, with a 60% decline in crypto-related cases.
• Paul Atkins defends the SEC’s approach, emphasizing a balanced enforcement strategy.
• Lawmakers express concerns about the SEC’s decision to drop high-profile crypto cases like Binance and Ripple.

The U.S. Securities and Exchange Commission (SEC) Chair, Paul Atkins, is facing increased scrutiny from lawmakers regarding the agency’s shifting approach to cryptocurrency regulation. At a House Financial Services Committee hearing, lawmakers questioned his leadership as the SEC’s enforcement actions have slowed. The hearing focused on the SEC’s decision to pause the case against Tron founder Justin Sun, amid concerns about political connections and the agency’s declining crypto-related actions.

Paul Atkins Faces Lawmaker Scrutiny Over Enforcement Shifts

During the hearing, Democratic lawmakers voiced concerns about the SEC’s decision to pause the case against Justin Sun, founder of Tron. Representative Maxine Waters questioned whether industry ties to former President Donald Trump influenced the agency’s enforcement actions. She also pointed to the broader decline in enforcement efforts after Trump took office, and new leadership under Paul Atkins was appointed to the SEC in 2025.

Waters specifically referenced the SEC’s 2023 lawsuit against Sun. The lawsuit accused him of organizing the unregistered sale of crypto securities related to the TRX and BTT tokens and manipulating trading volumes. However, in February 2025, the SEC requested that a federal court pause the case. Since then, Sun has emerged as a prominent financial backer of Trump-affiliated crypto ventures.

SEC Chair Defends Reduced Enforcement in Cryptocurrency Cases

Atkins defended the SEC’s approach, asserting that the agency continues to pursue a robust enforcement effort. He emphasized that the SEC is still active in bringing cases against violators, but the total number of actions has dropped. According to Cornerstone Research, the SEC’s overall legal actions fell 30% in 2025, with crypto-related cases dropping by 60%.

When asked about the SEC’s leniency toward some high-profile crypto cases, including those involving Binance, Ripple, Coinbase, Kraken, and Robinhood, Atkins responded cautiously. He declined to discuss specific cases, citing confidentiality concerns. However, he did reiterate his commitment to a balanced approach in overseeing the cryptocurrency market.

Lawmakers Raise Concerns About SEC’s Crypto Enforcement Priorities

Lawmakers were quick to question the SEC’s decisions to drop several high-profile cases against major players in the crypto industry. The SEC dismissed its lawsuit against Binance in May 2025, which had accused the company of offering unlicensed services and misleading investors about its trading controls. The agency also ended litigation involving Ripple, Coinbase, and other firms linked to the crypto industry.

Representative Stephen Lynch expressed frustration, asking how such high-profile cases could end without any enforcement actions. He emphasized the reputational damage the SEC has suffered due to these decisions. Despite these concerns, Paul Atkins maintained that the agency’s overall strategy is focused on ensuring market integrity while maintaining flexibility in enforcement.

Coinbase reported a net loss of $667 million in the fourth quarter of 2025, snapping the crypto exchange’s eight-quarter straight streak of profitability.

In its Q4 earnings released on Thursday, Coinbase said its earnings per share came in at 66 cents, which missed analyst expectations of 92 cents per share by 26 cents.

The company said its net revenue fell 21.5% year-on-year to $1.78 billion, falling short of analyst expectations of $1.85 billion.

Transaction-related revenue dropped nearly 37% year-on-year to $982.7 million, while subscription and services revenue jumped more than 13% from the year prior to $727.4 million.

It’s the first net loss Coinbase has reported since the third quarter of 2023, and comes as the crypto market fell over the quarter, with Bitcoin (BTC) dropping nearly 30% from a high of $126,080 in early October to under $88,500 by Dec. 31.

Bitcoin has fallen 25.6% to $65,760 so far this year, having climbed from a crash to under $60,000 earlier this month.

Despite the earnings miss, shares in Coinbase (COIN) rose 2.9% in after-hours trading on Thursday to $145.18 after a 7.9% decline over the trading day to close at $141.1.

For its Q1 outlook, the crypto platform said that it had generated $420 million in transaction revenue as of Feb. 10 but expects its subscription and services revenue to fall from $727.4 million to the $550 million to $630 million range.

Coinbase added that 2025 was a “strong year” for the company, both operationally and financially, with its full-year 2025 revenues climbing 9.4% from 2024 to $6.88 billion.

Related: Coinbase unveils crypto wallets designed specifically for AI agents

“In 2025, more than 12% of all crypto in the world resided on Coinbase,” the company said. “We’re building and connecting more products to facilitate customers doing more with their assets.”