- South Korea and the U.S. are moving forward with landmark legislation regulating stablecoins.
- The U.S. proposes a dual regulatory framework based on issuer size, while South Korea opts for centralized approval under its Financial Services Commission.
- Both governments have received pushback for parts of their regulatory push, as pressure mounts to provide clear legislation in the rapidly growing asset class.
South Korea’s newly appointed President, Lee Jae-myung, has announced that the country plans to fast-track his pledge to allow companies to issue stablecoins.
The move comes as the U.S. prepares for a key vote on stablecoin legislation this week, signaling a global shift as governments begin to craft policies that balance innovation with regulatory oversight.
While the U.S. and South Korean bills aim to legitimize stablecoins, they reflect different regulatory philosophies and economic strategies.
South Korean Stablecoin Push
On Tuesday, June 10, the ruling Democratic Party introduced the Digital Asset Basic Act, a proposed law intended to boost local innovation and improve market transparency.
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According to Bloomberg , South Korean companies will be permitted to issue stablecoins if they have at least 500 million won (approximately $367,876) in equity capital.
Issuers must guarantee refunds through their reserves, and the Financial Services Commission must approve all stablecoins and other asset-linked digital assets.
GENIUS Act
The GENIUS Act, officially known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, has returned to the U.S. Senate for a crucial vote.
Senate Majority Leader John Thune filed cloture on two significant amendments on June 10, setting up a final procedural vote expected later this week.
The landmark bill aims to establish clear federal and state-level rules for stablecoin issuers, including regulatory oversight and anti-money laundering requirements.
The GENIUS Act has faced repeated delays , particularly from Democratic lawmakers calling for stricter provisions.
Sen. Elizabeth Warren called for limiting stablecoin issuance to traditional banking institutions, but that amendment was ultimately voted down.
“The bill invites scammers into the market by refusing to prohibit people convicted of fraud and money laundering from owning stablecoins,” Warren said .
In response, Sen. Bill Hagerty, who introduced the bill in February, defended it, stating, “It presents common-sense rules that protect consumers, promote competition, and foster innovation.
“It’s time we provide the clarity and stability that our country and its innovators so desperately need.”
GENIUS Act vs. Digital Asset Basic Act
At a broad level, both the GENIUS Act and South Korea’s Digital Asset Basic Act aim to place stablecoins within clear legal frameworks.
Both propose licensing requirements and seek to promote the safer adoption of stablecoins for everyday use.
However, their structures and ambitions diverge.
The GENIUS Act focuses on payment stablecoins and avoids sweeping all digital assets under the same framework.
In contrast, under a comprehensive digital finance umbrella, South Korea’s Digital Asset Basic Act is designed to regulate a broader range of digital assets, including other asset-linked tokens.
The GENIUS Act introduces a dual regulatory model: Large issuers with over $10 billion in circulation fall under federal oversight, while smaller issuers may be managed at the state level.
South Korea, by contrast, requires all stablecoin issuance to be centrally approved by the Financial Services Commission.
While this move promises consistency, it concentrates regulatory power into a single authority, which has drawn criticism from the Bank of Korea.
Another area that differs is the specificity of consumer protection in the GENIUS Act.
The U.S. bill mandates strong transparency requirements and anti-fraud measures, including the enforcement of anti-money laundering and know-your-customer compliance.
Meanwhile, while South Korea’s bill emphasizes transparency and reserve guarantees, it does not yet provide detailed rules around user-facing protections.
Stablecoin Boom
These legislative efforts come as stablecoin use continues to surge globally.
According to Yonhap News, South Korea’s trading of stablecoins like USDT and USDC reached 57 trillion won in the first quarter across five domestic exchanges.
Globally, the stablecoin market is valued at around $254 billion, with Standard Chartered projecting that figure could reach $2 trillion by 2028 if the U.S. passes comprehensive regulation.
Tether and Circle remain dominant in the space, commanding over 85% of the market, with total circulating values of $150 billion and $61 billion, respectively.
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