U.S. GENIUS Act Shock Raises Fears of Global Isolation for Won Stablecoins [Crypto Briefing]

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[Financial News] The Office of the Comptroller of the Currency (OCC) has intensified global debate on digital finance regulation by releasing a Notice of Proposed Rulemaking (NPRM) that details the technical and financial requirements for stablecoins. The rule, which supports the U.S. stablecoin framework law, the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), centers on a requirement to maintain reserve assets equal to 100% of outstanding issuance, held in U.S. Treasury bills with maturities of 93 days or less and similar assets. In particular, as the United States puts public distributed ledgers, or public blockchains, at the forefront, concerns are growing that Korea's token securities (STO) infrastructure, which is designed mainly around permissioned distributed ledgers, or private blockchains, may not be compatible and could face isolation in overseas markets.
According to the National Assembly of the Republic of Korea and industry sources on the 20th, the NPRM recently announced by the OCC requires payment stablecoin issuers (PPSIs) to continuously hold highly liquid assets at least equal to their outstanding issuance value (OIV). Eligible reserve assets are limited to cash, deposits at the Federal Reserve System (Fed), and U.S. Treasury bonds with remaining maturities of 93 days or less. The move reflects U.S. financial authorities' intent to define stablecoins as a redeemable means of payment rather than an investment product.
The revenue model has also been curbed. The NPRM completely bans interest or yield payments tied to stablecoin holdings and blocks indirect distribution channels through affiliates or third parties. In other words, an issuer becomes subject to regulation unless it can directly prove that it is not in violation.
Another key issue is technical interoperability. The NPRM is seeking public comments while emphasizing the characteristics of public blockchains. If public blockchains are ultimately reflected in the final rule, concerns are rising that Korea's STO infrastructure and early won stablecoin reserve models, which have been designed around private blockchains under regulatory guidelines, will fail to meet U.S. technical standards.
Experts argue that if a Korean won stablecoin does not adopt a public blockchain, it may fail to gain recognition of 'equivalence' with U.S. regulations and could be excluded from global payment networks. Han Seo-hee, a lawyer at Lee & Ko, said at a recent National Assembly seminar that Korea's financial authorities should consider submitting an official comment to the OCC, including plans for legislation on a Korean won stablecoin. She added that Korea's regulatory framework should also be aligned with U.S. rules, including allowing financial institutions to use public blockchains.
Kim Jong-seung, CEO of xCrypton, also said, "After the OCC finalizes its rule, the Treasury's decision on equivalence standards and the convergence of regulations across countries will effectively complete a global licensing system." He added, "Issuers in countries that fail to sign equivalence agreements could be blocked from the U.S. market from the outset, so if Korea does not speed up its legislative timeline, the Korean won stablecoin risks being isolated in a global order already dominated by dollar stablecoins."
Bills related to stablecoins, proposed by lawmakers from both the ruling and opposition parties, are currently pending in the National Assembly of the Republic of Korea, but provisions on technical governance and interoperability as detailed as those in the U.S. NPRM remain limited.
A legal industry source said, "To avoid global isolation, a Korean won stablecoin must proactively reflect interoperability standards that will be led by the National Institute of Standards and Technology (NIST) and others." The source added, "It is also time to review technical alternatives that can resolve conflicts between the Public Blockchain and existing laws such as the Personal Information Protection Act."
elikim@fnnews.com Kim Mi-hee Reporter