Uncertainty Eases for U.S.-Regulated Digital Assets as Korea Accelerates Institutionalization with ‘Phase 2’ Law [Crypto Briefing]

According to Financial News, U.S. financial regulators have officially classified major virtual assets as “digital commodities,” while the Korean government is preparing to introduce the Digital Asset Basic Act (Phase 2 law) within this month, aiming to secure global regulatory consistency. These moves in both countries are expected to mark a turning point that redefines virtual assets as products and means of payment within the existing financial system, effectively ending nearly a decade of debate over whether they should be treated as securities.
As of the 23rd, according to the National Assembly and industry sources, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have specified 16 major virtual assets, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), as “digital commodities” in their recently issued joint interpretive guidance. Observers note that this softens the SEC’s long-standing “enforcement-first” regulatory stance and reduces legal uncertainty surrounding institutional investors’ spot holdings of virtual assets and the design of additional Exchange-Traded Fund (ETF) products linked to them.
In Korea, legislation on virtual assets has now entered the stage of comprehensive system design. The Democratic Party of Korea’s Digital Asset Task Force, after final coordination with the Financial Services Commission (FSC), is expected to submit a single consolidated bill within this month. The key issue is the issuance structure for a Korean won stablecoin. A compromise under discussion would adopt a consortium-based model in which banks hold at least “50% plus one share,” while expanding participation to the central government, local governments, public institutions, and FinTech companies that meet certain criteria.
In light of recent incidents at virtual asset exchanges, the bill is also expected to include much stronger mandatory internal control requirements. Financial authorities are calling for the law to clearly stipulate internal control and security standards, including: continuous reconciliation of on-chain and ledger balances for custodied virtual assets; mandatory multi-approval procedures and system access controls; and submission of investment plans for information technology (IT) systems. This is widely seen as reflecting the authorities’ intention to impose bank-level social responsibility and risk management obligations on virtual asset service providers such as KRW Market exchanges.
A key point of convergence between U.S. and Korean policy is the use of stablecoins to improve payment efficiency. Both the implementing rules for the U.S. Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) and Korea’s Phase 2 Digital Asset Basic Act discussions identify stablecoins as core infrastructure for real-time T+0 settlement and clearing of digital assets, including tokenized securities and Security Token Offerings (STO).
Previously, Eunbo Jeong, Chairman of the Korea Exchange, predicted, “As blockchain-based trading becomes more widespread, the existing T+2 settlement cycle will disappear and the system will shift to one where payments are effectively made in real time.” Recently, global financial institutions have also been accelerating efforts to integrate stablecoins into their own payment networks, as seen in Mastercard’s approximately 1.8 billion dollar acquisition of stablecoin infrastructure provider BVNK.
However, political variables in the legislative process remain a source of risk. Hong Sung-uk, researcher at NH Investment & Securities, pointed out, “Depending on the outcome of the United States midterm elections in November, the momentum behind these policy initiatives could change.” In Korea as well, with local elections approaching, some observers warn that politically sensitive provisions—such as the rule capping exchange controlling shareholders’ stakes at 20%—could become major obstacles to the bill’s passage.
A virtual asset industry official commented, “If the United States has opened the floodgates by classifying assets, Korea is now pursuing a Phase 2 law focused on securing the soundness of operating systems,” adding, “The process of finalizing the policy details over the next one to two months will determine the structure of the domestic virtual asset market for years to come.”
elikim@fnnews.com Kim Mi-hee Reporter