The largest South Korean political party wants the Korean to fast-track KRW stablecoins, taking a page from the Trump Administration’s recent moves to establish a stablecoin bill.
According to a report from local media Edaily, lawmakers from the South Korean Democratic party are pushing for the government to start institutionalizing Korean won-pegged stablecoins. Chairman of the party’s Digital Asset Committee, Min Byeong-deok, believes the global stablecoin market has the potential to become “bigger than artificial intelligence or semiconductors” in the near future.
Min emphasized the urgency of institutionalizing stablecoins pegged to the Korean won. He views it as a way to not only strengthen its national fiat currency through crypto, but also to potentially boost global demand for won-backed assets.
“We need to take the lead in institutionalizing stablecoins before U.S. dollar-based stablecoins become firmly established. That is the only way we can secure a sure position in the global battle for stablecoin hegemony,” said Min in his statement.
The top five stablecoins by market cap are all pegged to the U.S. dollar, May 26, 2025 | Source: CoinGecko
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At the moment, the South Korean Democratic Party presidential candidate, Lee Jae-myung is a frontrunner in the lead-up to the South Korean presidential elections. Inside sources claim Lee is interested in accelerating the roll-out of KRW stablecoins, aiming to establish them quickly before U.S. proceeds to establish stablecoin bills.
These regulations could potentially boost the domination of strongholds like Circle (USDC) and Tether’s (USDT) U.S. dollar-backed stablecoins on the market.
“These two [stable]coins account for 90% of the stablecoin market in the United States, and are also used in some areas of Korea, such as Dongdaemun, where many foreign payments are made,” continued Min.
Min said that he is currently urging South Korean lawmakers to pass a stablecoin bill, with a working draft titled “Basic Act on Digital Assets.” Min has reportedly conducted a second review process with industry experts and the media. He plans to submit the bill after the third review.
Most recently, the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025, or the GENIUS Act passed the U.S. Senate vote, garnering 66 votes in favor. It is currently headed to a full floor vote, bringing it closer to becoming formalized as the first U.S. stablecoin bill.
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