Chairperson of the National Policy Committee says the General Act on Digital Assets should be handled in depth... Hopes rise for faster legislation in the second half of the year [Crypto Briefing]

[Financial News] Yoo Dong-soo, a Democratic Party of Korea (DPK) lawmaker newly elected as chairperson of the National Policy Committee, stressed his commitment to legislation on the General Act on Digital Assets. As the second half of the 22nd National Assembly has reshuffled committee assignments and placed many former members of the DPK's Digital Asset Task Force on the committee, lawmakers and market participants expect the pace of legislation to pick up in the second half of the year.
According to political circles and the virtual asset industry on the 6th, Yoo said at a full committee meeting held that day at the National Assembly, "The General Act on Digital Assets, volatility in the capital market, issues in unequal power relations, and the protection of self-employed business owners are among the issues we must address most deeply as current priorities."
Yoo's remarks came in response to comments from lawmaker Lee Kang-il. Lee had earlier noted that "the General Act on Digital Assets has been discussed for a long time, but it has not passed," adding that "the market has shifted from expectations to disappointment."
The market expects the newly formed National Policy Committee to push ahead with legislation. That is because six of the nine lawmakers who belonged to the DPK's Digital Asset Task Force in the first half of the term have been assigned to the committee this time.
The former task force members now serving on the second-half National Policy Committee are Kang Jun-hyun, Kim Hyeon-jeong, Min Byeong-deok, Lee Kang-il, Park Min-gyu, and Han Min-soo. Park and Han have newly joined the committee from the Strategy and Finance Committee and the Science, ICT, Broadcasting, and Communications Committee of the National Assembly of South Korea, respectively, while the others remained on the committee.
In particular, Park Sang-hyeok, who has been active in virtual asset-related legislation, was named the ruling party's secretary on the second-half National Policy Committee, adding to expectations that the pace of legislation could accelerate. In November last year, Park introduced a bill titled the "Act on the Market and Industry of Digital Assets," which included provisions such as the institutionalization of stablecoins.
However, many in the industry believe the process could easily slip into next year. That is because a number of issues still need to be resolved. The DPK's Digital Asset Task Force, which had led the legislative effort, was recently disbanded when the floor leader's term ended, and it has not yet been decided whether it will be relaunched. The upcoming Parliamentary Inspection of the Administration in the second half of the year and the party convention are also seen as variables.
Another factor is the friction between the ruling and opposition parties over the reshuffling of committee posts for the second half of the term. The People Power Party says the DPK forced through the reshuffle and is responding with a boycott of scheduled meetings. The full committee meeting held that day was also attended by no lawmakers from the People Power Party.
Kim Ji-won, a researcher at KB Securities, said, "The continuity of legislative discussions has been maintained as key task force members remained on the National Policy Committee," adding, "The National Assembly bill has been largely organized, but two key issues in the government bill remain unresolved. Discussions could intensify at the regular session of the National Assembly in September, but the standoff between the ruling and opposition parties remains a variable, as the People Power Party is protesting the DPK's unilateral reshuffle and has submitted resignation letters from standing committee members."
Meanwhile, there is growing speculation that the U.S. Digital Asset Market Clarity Act could be enacted this year. Recently, the National Organization of Black Law Enforcement Executives (NOBLE) became the first major law enforcement group to publicly support the Clarity Act, while the Major County Sheriffs of America (MCSA) also shifted from opposing the bill to taking a neutral stance.
Lee Jun-ho, a researcher at Hana Securities, explained, "As Senate floor debate is expected within August, the fact that institutions that were previously negative toward the bill are changing their positions is encouraging," adding, "The Clarity Act is now moving beyond earlier debates such as stablecoin interest rewards and is entering a stage where disagreements over ethical rules are being narrowed."

yimsh0214@fnnews.com Im Sang-hyeok Reporter