US Senate Passes CLARITY Act, Accelerating Digital Asset Institutionalization

The U.S. Senate Committee on Banking, Housing, and Urban Affairs has passed the CLARITY Act, which aims to clearly define how virtual assets should be classified as products and what regulations they should be subject to. This move is seen as a significant step towards institutionalizing digital assets.

Japan was the first country to amend its Payment Services Act in 2016 to include virtual assets as subjects of financial regulation, followed by other countries such as Korea, which implemented the Act on the Protection of Virtual Asset Users in July this year. The European Union has also enacted the Markets in Crypto-Assets Regulation (MiCA) targeting EU member states.

Stablecoins, a type of digital asset pegged to a fiat currency or another cryptocurrency, have gained popularity due to their ability to facilitate fast and cost-effective transactions. However, the proliferation of stablecoins raises concerns about regulatory frameworks and institutional adoption.

Korea is discussing the 'Basic Digital Assets Act', which addresses the issuance of won-denominated stablecoins among other issues. The country aims to establish a reliable issuance structure for won-based stablecoins, secure monetary sovereignty, and digital competitiveness.