South Korea’s Democratic Party Pushes to Fast-Track KRW Stablecoin Ahead of U.S. Legislation

South Korea’s Democratic Party is urging the government to move quickly on launching a stablecoin backed by the Korean won (KRW), hoping to secure a leading role in the global digital asset race before U.S. regulations dominate the landscape.

According to a report from local news outlet Edaily, key lawmakers are advocating for swift action to institutionalize KRW-pegged stablecoins, taking inspiration from the recent momentum in U.S. stablecoin legislation—most notably the GENIUS Act, which recently passed a Senate vote.

Min Byeong-deok, chairman of the Democratic Party’s Digital Asset Committee, emphasized the urgency in a public statement.

“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,” Min said.

Min believes the stablecoin sector could outpace even artificial intelligence and semiconductors in terms of economic impact. He sees the rapid development of a Korean won stablecoin as a way to reinforce national monetary sovereignty while boosting international interest in KRW-backed digital assets.

The Democratic Party's presidential candidate, Lee Jae-myung, is currently leading in the polls and is reportedly supportive of an accelerated rollout. Sources suggest that under Lee’s leadership, the party is eager to implement a regulatory framework ahead of U.S. lawmakers finalizing their own.

The concern stems from the rising dominance of U.S. dollar-based stablecoins like Circle’s USDC and Tether’s USDT, which together account for roughly 90% of the U.S. stablecoin market. These stablecoins are already used in Korean markets like Dongdaemun, known for its high volume of cross-border transactions.

To compete, Min is championing the “Basic Act on Digital Assets,” a legislative proposal aimed at regulating and legitimizing stablecoins in South Korea. The bill has already undergone two rounds of review with industry stakeholders and media, and is expected to be submitted after a final round of revisions.

Meanwhile, the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025) passed the U.S. Senate with strong bipartisan support and now awaits a full floor vote, bringing the U.S. one step closer to formal stablecoin regulation.