Last month, a delegate from the Republic of Korea met with representatives of the Securities and Exchange Commission Crypto Task Force to better understand US policy initiatives in developing crypto asset regulations and how Korea could potentially align with the US as it advances new rules for digital assets.
The Korean delegation was composed of a bipartisan group of elected officials as well as staff, embassy officials, and public crypto participants.
Specifically, the delegation discussed the GENIUS Act, already signed into law, legislation that outlines the framework for “payment stablecoins” and how issuers and holders will be treated. In the US, the preference has been to support privately issued digital money rather than central bank digital currency, which is viewed as potentially infringing on privacy rights and creating an environment for government abuse.
The delegation also discussed the CLARITY Act, crypto market infrastructure legislation that remains in legislative limbo in the US Senate.
The Koreans would like to “ensure global consistency” in their legislative approach. This makes a lot of sense, as fragmented global rules could undermine the benefits of digital assets.
The meeting between Korean and US officials highlights the pressing need to approve the CLARITY Act in the Senate and get the bill signed into law. The US is poised to set a global path for digital asset regulation but, due to the shortcomings of the previous administration, is already behind.
Korea is a keen participant in the digital asset sector with approximately 30% of the population holding crypto. The development of digital assets is a “national strategic priority.”
Meanwhile, in the US, there continue to be recalcitrant public officials and lobbyists representing traditional finance that would prefer to undermine the CLARITY Act. Some observers believe that if the legislation is not approved before the August break in Congress, the legislation may die, thus missing an important opportunity for the US to better compete globally.