The US is embracing the "Golden Age of Cryptocurrency," but how will South Korea follow suit?

Author: Heechang Four Pillars

Compiled by: TechFlow

Key Takeaways

The Executive Order 14178 Task Force released a 166-page report today outlining how the United States can lead the blockchain industry and usher in a " golden age of crypto ."

The core content of the report can be summarized into four major points: (i) establishing a unified classification framework for the digital asset market; (ii) interconnection and interoperability between the banking and blockchain industries; (iii) accelerating the adoption of stablecoins; and (iv) formulating guidelines for illegal financial activities and taxation.

In the real world, the momentum for change is increasingly evident. Collaborations between traditional financial institutions (such as JPMorgan Chase) and blockchain-based platforms (such as Coinbase and Robinhood) are demonstrating a significant trend toward practical financial innovation.

While countries like the United States are leading the way in this area, South Korea should also take more action and remain open-minded—essentially saying, “Let’s take a hard look at this and try to understand it.” Only by starting to understand it now can we avoid being left behind in the tide of rapid change.

1. Those who understand the trend of blockchain will take the lead

In the United States, the government is actively recognizing the potential of blockchain and digital assets and is vigorously promoting them. On January 23, 2025, President Donald Trump issued Executive Order 14178, "Strengthening American Leadership in Digital Financial Technologies," which established clear regulatory guidance and encouraged innovation in the field. In accordance with this order, the Executive Order 14178 Task Force today released a 166-page report outlining how the United States can lead the blockchain industry and usher in a " Golden Age of Crypto ."

The report reviews the United States' long tradition of technological innovation and assesses the potential of blockchain and digital assets (cryptocurrencies) to fundamentally transform the financial system and asset ownership structures. It also notes that overly restrictive measures, such as the previous administration's so-called "Operation Choke Point 2.0," excluded legitimate and compliant crypto companies from the banking system. The report recommends that the government actively support business activities related to these innovative technologies rather than suppress them.

Adhering to the spirit of Executive Order 14178, the report emphasizes that U.S. regulators should foster innovation and attract crypto companies to operate domestically through clear and consistent rules. The report urges agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to collaborate on establishing clear standards and a unified classification framework to address regulatory gaps. Furthermore, the report recommends adopting a technology-neutral and flexible regulatory approach in emerging areas such as decentralized finance (DeFi) to ensure that innovation is not hindered by outdated rules.

 Source: Strengthening U.S. Leadership in Digital Financial Technology – The White House

Hong Kong, meanwhile, quickly followed suit. In June 2023, the Hong Kong government officially established a licensing system for virtual asset exchanges. This bill aims to regulate cryptocurrency trading while allowing limited participation by retail investors. In May 2025, the city passed Asia's most advanced "Stablecoin Act," establishing licensing requirements for institutions issuing stablecoins pegged to fiat currencies. The Act will officially take effect on August 1, 2025. Thanks to this "regulatory and innovation-friendly" approach, Hong Kong is poised to drive blockchain development and become one of Asia's leading digital asset hubs.

2. Key Messages from the Report: Strengthening U.S. Leadership in Digital Fintech

Since the Trump administration took office, sentiment toward cryptocurrencies in the United States has shifted. A survey conducted as of June 2025 showed that 72% of cryptocurrency investors support President Trump's policies, and over one-fifth of Americans now hold some form of cryptocurrency. Of these investors, 64% stated that the government's pro-crypto stance has made them more inclined to invest in cryptocurrencies than before. This optimism is also spreading to institutional investors: a poll shows that 83% of institutional investors plan to increase their allocation to digital assets in 2025.

These data indicate that a more friendly regulatory environment is injecting new vitality into the crypto industry. Under the government's slogan of "supporting responsible innovation and growth," the report repeatedly emphasizes that by implementing crypto-friendly policies and establishing a clear regulatory environment, the United States is expected to seize a leading position in the upcoming blockchain revolution.

The report's core content can be summarized into four key points. Let's explore them in depth.

2.1 Establishing a unified classification framework for the digital asset market

This section explores the legal and regulatory classification of digital assets and approaches to improving market structure. Currently, there are no clear criteria in the United States to define whether a cryptocurrency is a security or a commodity. This ambiguity has led to jurisdictional conflicts between regulators, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and has created gaps in regulatory overlap. The report notes that "the lack of a comprehensive classification framework has led to a patchwork of interpretations, creating a minefield for well-intentioned parties attempting to comply with regulations," highlighting the urgent need for a clear and consistent digital asset classification system.

For example, a digital token used for fundraising might be considered a security (an investment contract) when it's sold, but once it's sufficiently decentralized, some argue it should no longer be considered a security. Currently, no standard exists that accounts for this dynamic change during a project's lifecycle. This creates significant uncertainty for projects, as they struggle to predict which laws will apply over time.

Against this backdrop, the report endorses the proposed Clarity in Digital Asset Markets Act (CLARITY Act) . The bill passed the U.S. House of Representatives in 2025 with bipartisan support. The CLARITY Act classifies digital assets into security tokens and non-security (commodity) tokens, explicitly granting the U.S. Securities and Exchange Commission (SEC) jurisdiction over the former and the Commodity Futures Trading Commission (CFTC) jurisdiction over the latter and the cryptocurrency spot market. The bill also includes provisions protecting Americans' rights to self-custody their assets and engage in peer-to-peer transactions, and recognizes the value of decentralized governance and decentralized finance (DeFi).

The report states that the CLARITY Act will "lay a sound foundation for the structure of the U.S. digital asset market," but also recommends several improvements during the legislative process. First, the report emphasizes the need for clarity on the legal status of fully decentralized protocols. The report provides several factors for lawmakers to consider, such as:

• Whether a given software protocol exercises any actual “control” over user assets;
• Whether the agreement can be technically changed or upgraded;
• whether there is a centralized operator or governance structure;
• and whether current regulatory obligations are technically enforceable.

Given these criteria, the report argues that truly decentralized projects cannot be regulated in the same way as traditional intermediaries and therefore require a new approach. Regulators should develop a flexible framework that achieves policy objectives while avoiding stifling innovation.

The report hopes the CLARITY Act will provide this foundation and urges Congress to enact it swiftly. It also recommends that regulators, before the act is enacted, use existing authorities to take immediate steps to provide greater regulatory clarity for market participants.

2.2 The banking and blockchain industries should be interconnected

This section explores the integration of the banking and cryptocurrency industries and offers policy recommendations for how U.S. banks can expand their involvement in digital assets under prudential regulation. The report addresses the previous administration's move to cut off banking services for cryptocurrency companies—a policy known as "Operation Choke Point 2.0"—and criticizes it as a misguided attempt to stifle the development of a legitimate industry by pushing it away from the banking system.

The report noted that this top-down pressure has led many U.S. cryptocurrency companies to face problems such as bank account closures, resulting in unintended side effects such as consumer harm and the growth of unregulated "shadow" markets.

The report emphasizes that banks can significantly improve efficiency and save costs by leveraging blockchain technology. For example, integrating distributed ledgers into payment and settlement systems could enable atomic settlement of payments and transactions in real time, around the clock, eliminating business hours constraints and reducing the costs associated with central clearing houses. Some major banks are already moving in this direction, testing their own digital dollar tokens or blockchain platforms for bond settlement.

Recommendations in this section of the report include:

• Clarify permissible crypto-related activities for banks and revive initiatives such as the Office of Regulatory Innovation to provide guidance to banks in this area.
• Increase transparency in the banking charter approval and Federal Reserve account application process to facilitate entry for new businesses while avoiding unfairly discouraging existing banks from serving crypto clients;
• Align bank capital requirements with actual risks and develop supervisory guidance for new risk exposures such as tokenized assets.

2.3 Stablecoins should be viewed as innovative digital tools and actively promoted

This section focuses on stablecoins in the context of digital payment innovation and how they are reinforcing the dollar's dominance. Stablecoins are crypto assets with a stable value, designed to maintain a 1:1 peg to a fiat currency like the US dollar. Due to their low price volatility, they effectively serve as digital cash within the crypto ecosystem.

The report assesses that widespread use of dollar-pegged stablecoins could modernize the US payments infrastructure and help the US transition away from its aging legacy payment networks. For example, using stablecoins for international remittances or securities settlements could enable near-instant processing without intermediary banks and significantly reduce fees. This would also enhance the US dollar's international influence. Currently, dollar-pegged stablecoins account for a significant share of global cryptocurrency trading volume, with tens of billions of dollars in circulation. The report emphasizes that to lead this trend, the US must establish a clear federal regulatory framework for stablecoins.

Against this backdrop, the report highlights the "GENIUS Act," the "Guiding and Establishing a National Innovation Stablecoin for the United States" Act, passed by the US Congress this year. The GENIUS Act (i) establishes a system for private issuers of US dollar stablecoins, approved and regulated by the Federal Reserve; and (ii) prohibits the Federal Reserve from developing a central bank digital currency (CBDC), thus explicitly favoring private-sector digital dollar innovation. The report praises the GENIUS Act for "embedding a pro-innovation framework into federal law" and strongly urges the Treasury Department and other relevant agencies to diligently and promptly implement it.

The report also notes that addressing tax issues is crucial alongside establishing stablecoin regulations. Under current U.S. tax law, the definition of a stablecoin is unclear, and its tax treatment may differ depending on whether it is considered currency or property. The report notes that this ambiguity creates a burden for participants, and therefore, once federal stablecoin regulation is in place, tax law should be updated to clarify the classification of stablecoins and eliminate uncertainty.

The core message of this section can be summarized as: "Actively promote stablecoins as a means of digital dollar innovation and firmly reject central bank digital currencies (CBDCs) because they threaten American freedom and financial stability." Regarding stablecoins, the report urges strict implementation of the newly enacted GENIUS Act and recommends additional legislation, if necessary, to strengthen privacy protections and consumer safeguards.

The report also emphasizes that the United States should lead the development of global standards for stablecoins internationally and promote innovation in cross-border payments.

2.4 Guidelines must be developed to address illegal financial activities and taxation

This section discusses the illicit financial risks associated with cryptocurrencies (such as money laundering, terrorist financing, and tax evasion) and countermeasures. The report begins by stating that "to embrace innovation while safeguarding national security, we must modernize anti-money laundering (AML) regulations" and analyzes the vulnerabilities of the current system.

The report acknowledges the challenges of enforcing laws designed for traditional banking, such as the Bank Secrecy Act (BSA) and the Travel Rule, due to the anonymous, borderless, and real-time nature of cryptocurrency transactions. For example, criminals may use decentralized exchanges or mixing services to repeatedly swap or split funds, making transactions difficult to trace. The report cites specific cases—such as the abuse of decentralized finance (DeFi) by North Korean hacker groups in 2022 and ransomware attackers demanding cryptocurrency payments—to illustrate the need for current anti-money laundering (AML) mechanisms to adapt to these emerging tactics.

At the same time, the report repeatedly emphasizes that anti-money laundering (AML) and counter-terrorist financing (CFT) enforcement must not be abused or deviate from the original intent of the law. If AML regulations are used for political purposes or to suppress specific industries, it will only undermine public trust in the financial system. Therefore, regulators themselves should operate under democratic oversight and transparency, with clearly articulated guidelines to avoid unfair restrictions on legitimate businesses and users.

The final section offers recommendations for addressing ambiguity and uncertainty surrounding the taxation of digital assets. The report notes that while the IRS generally classifies cryptocurrencies as property, specific tax guidance has not yet been established for new activities such as staking, mining, airdrops, or token wrapping. This lack of clarity is leading to significant taxpayer confusion. The report urges the IRS and Treasury Department to issue clearer and more practical tax guidance and recommends considering tax exemptions for small cryptocurrency transactions to avoid penalties for using cryptocurrencies for everyday payments.

3. Let more people better understand cryptocurrency

 Source: X (@glxyresearch)

Many countries and companies (the United States being a prime example) have rushed to announce and implement blockchain strategies, not simply because they're following trends, but because they've anticipated the market's trajectory and prepared for it. In the United States, companies like Messari, Delphi, Galaxy Research, and rwa.xyz have consistently provided high-quality research, helping institutions develop forward-looking strategies for blockchain and digital assets. Protocols like Ondo Finance and Morpho have built secure on-chain financial services, while companies like BitGo and Coinbase provide reliable infrastructure that enables institutions to invest in crypto assets.

In contrast, South Korea's fundamental understanding and preparation for the blockchain industry, particularly stablecoins, remain insufficient. Discussions about stablecoins continue to focus on the failure of Terra or the debate over why stablecoins are unviable. The debate revolves around issuance rather than actual application. However, stablecoins have demonstrated diverse application scenarios globally, and efforts should focus not only on issuance but also on developing products that integrate them into everyday life. Achieving this goal requires policy support and a clear regulatory environment.

Because the blockchain industry, and stablecoins in particular, are still in their early stages, it's difficult to cite concrete success stories to justify their adoption. However, this is precisely why it's crucial to maintain an open mind—essentially, to say, "Let's take a hard look and try to understand this." Only by understanding it now can we keep pace with the rapid pace of change.

4. The puzzle pieces are gradually coming together, and the future is beginning to take shape.

The lines between finance and blockchain are blurring, with leading companies from both sectors collaborating. A prime example is the partnership announced between JPMorgan Chase, the largest US bank, and the cryptocurrency exchange Coinbase . JPMorgan Chase will allow its credit card customers to redeem their rewards points for USDC on Coinbase's Base blockchain. JPMorgan Chase will directly connect customer accounts to the Coinbase platform, enabling seamless, near-instant conversions between fiat and cryptocurrency. This landmark integration between a traditional bank and a cryptocurrency exchange demonstrates that major financial institutions now recognize digital assets as a legitimate component of their financial services.

This trend isn't limited to banks and exchanges. Coinbase has also partnered with Morpho to expand into on-chain finance, also known as decentralized finance (DeFi). This partnership allows users to deposit their Bitcoin holdings through the Coinbase app and use them as collateral to borrow USDC for everyday expenses. This demonstrates a strategy for leveraging assets not possible in traditional finance. Investors can effectively continue to hold Bitcoin while managing their daily cash flow, demonstrating that blockchain-based financial innovation has reached a viable stage.

New developments are also emerging in the fintech sector. The popular trading platform Robinhood is launching its own Layer-2 blockchain, providing infrastructure for the on-chain issuance and trading of public and private stocks. Robinhood Chain will eventually integrate into the Ethereum ecosystem. This means that fintech platforms can not only provide brokerage services but also utilize their own blockchains to process a wider range of on-chain financial assets. In short, a new trend is emerging: traditional fintech platforms are adopting blockchain technology to enable previously unattainable asset ownership and liquidity.

Unfortunately, compared to these global examples of financial innovation, South Korea still lags behind. There has yet to be any substantial collaboration or integration between South Korean banks, exchanges, fintech startups, and DeFi projects. Perhaps South Korean institutions should at least experiment with private blockchain platforms (such as JPMorgan Chase's private Kinexis network) to gain practical experience. Major countries and financial institutions around the world have begun to chart a course for blockchain-driven finance and are actively collaborating. If South Korea continues to stagnate, domestic discussions will inevitably remain theoretical, failing to translate into practical action.

Of course, implementing blockchain is no easy task, and caution is understandable given the uncertainty surrounding its market impact. However, avoiding the issue or indefinitely delaying action due to uncertainty is not the best option. The blockchain-driven transformation of the financial system has already begun, and pioneers are rapidly learning and accelerating. It remains for others to decide when and how to join this wave.

The momentum for change is becoming increasingly apparent, and as the puzzle pieces gradually come together, now is a critical moment to gain a deeper understanding of the blockchain industry - and it is also the best time to seriously consider and take action to adopt blockchain technology .