U.S vs South Korea: Who’s Winning the Stablecoin Regulation Race?

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South Korea has taken the lead on stablecoin regulation. On June 10, the country passed the Digital Asset Basic Act, allowing companies to issue stablecoins under clear rules—while the US still struggles to finalize its own legislation.

South Korea Legalizes Stablecoins

Under the new law:

Companies can issue stablecoins with a minimum capital of 5 million won (~US$367,876).

All stablecoins must be approved by the Financial Services Commission (FSC).

Issuers must guarantee refunds via reserves to protect users.

This move makes South Korea one of the first major economies to fully legalize stablecoins.

US Stablecoin Bill Faces Delays

Meanwhile, the US is preparing for a long-awaited vote on its GENIUS Act. The bill aims to:

Set federal and state-level rules for stablecoin issuers.

Enforce strong anti-money laundering (AML), Know Your Customer (KYC), and anti-fraud measures.

However, political opposition remains.

Senator Elizabeth Warren warned:“The bill invites scammers into the market…”

Senator Bill Hagerty responded: “It’s time we provide the clarity and stability our innovators need.”

Key Differences: GENIUS Act vs Digital Asset Basic Act

FeatureUS GENIUS ActSouth Korea Digital Asset Basic ActScopePayment stablecoins onlyAll digital assets + stablecoinsApproval authorityFederal for issuers >$10B; State for smallerAll stablecoins require FSC approvalCompliance requirementsAML, KYC, anti-fraud, transparencyTransparency + reserve guarantees

Also Read :   France’s Societe Generale Enters USD Stablecoin Market With USDCV   ,

What’s Next? Tether and Circle Dominate

Global stablecoin demand is surging:

Market projected to hit $254B in 2025, and $2T by 2028.

In South Korea, stablecoin trading on five domestic exchanges already hit ₩57T.

Globally, Tether (USDT) and Circle (USDC) dominate with an 85% market share—USDT at $150B, USDC at $16B.

As South Korea opens its market, and the US races to finalize its bill, the global stablecoin landscape is about to shift dramatically.