Han Seo-hee spoke on May 15 at a Seoul seminar, stating the Clarity Act aims to induce US digital asset onshoring by rewarding compliance and penalizing exit. She explained that the US is incorporating perpetual futures into the regulated framework to strengthen investor protection, while signaling that entities not remaining in the US cannot accommodate US citizens and fall outside the regulatory system. Han described the Clarity Act as 'comprehensive restructuring of the industry structure,' adding that regulatory clarity results in a strategy to provide benefits to those who comply with the regulatory system and impose costs on those who do not, thereby further inducing onshoring. The seminar, titled 'US Digital Asset Hegemony Strategy and Korea's Response,' addressed the strategic implications of US stablecoin and digital asset legislation for Korea's financial sector.
CFTC Perpetual Futures Allowance as Onshoring Example
Han cited the Commodity Futures Trading Commission's (CFTC) allowance of perpetual futures as an example of the onshoring strategy. She stated that the US is moving to bring perpetual futures into the regulated framework and enhance investor protection, but when entities do not remain in the US, the signal is that they cannot accommodate US citizens and are outside the regulatory system. Han said this dual approach—providing benefits to those who enter and imposing costs on those who exit—is the implication of the Clarity Act's onshoring strategy.
GENIUS Act Timeline and Foreign Issuer Recognition Provisions
Han outlined the GENIUS Act timeline: the law was passed and promulgated in July 2025, with rule proposals already prepared by the Office of the Comptroller of the Currency (OCC), the Treasury Department, and the Financial Crimes Enforcement Network (FinCEN) in the first half of 2026. She stated that implementation is scheduled for January 2027 at the latest, even with possible extensions, marking the point when GENIUS-compliant stablecoins will begin circulating globally. Han noted that the foreign issuer recognition provision allows overseas-issued stablecoins deemed to meet US standards to be distributed domestically, with a three-year grace period currently in place. She interpreted this provision as an inducement for other countries to redesign their systems to align with US regulations, as they cannot forgo dollar liquidity.
Tether and Cantor Fitzgerald Reserve Asset Mechanism
Han discussed Tether's partnership with Cantor Fitzgerald, a primary dealer formerly operated by Commerce Secretary Ruttnik. She explained that Cantor Fitzgerald holds a significant portion of Tether's reserve assets in US Treasuries. Han stated that Tether selected Cantor Fitzgerald because, as a Federal Reserve-designated Treasury specialist with abundant liquidity, the firm can immediately respond to redemption requests by converting Treasuries to cash. She assessed that Tether has aligned its system to comply with US regulatory requirements, including the GENIUS Act's immediate redemption clause. Han noted that as emerging market users increase their dollar demand and hold Tether, the reserve assets are converted to US short-term Treasuries, creating a self-reinforcing structure that expands Treasury demand.
Korea's Preparedness for US-Compliant Stablecoins
Han stated that once the GENIUS Act takes effect in January, Korea will have to accept GENIUS-compliant stablecoins whether it wants to or not, as Korea has not yet enacted legislation and is not well-prepared. She said inflows will occur through virtual asset operators already handling stablecoins, with high likelihood of use in trade and settlement payments. Han emphasized the need for Korea to quickly launch won-denominated stablecoins as a monetary sovereignty defense measure, noting that liquidity accumulation requires time. She identified token securities settlement and virtual asset payment as the first large-scale use cases. Han also stated that Korea's banking sector must prepare for reserve asset custody and foreign exchange transaction handling when stablecoins flow in as trade payments, and that network separation regulations must be eased to enable blockchain adoption and technology accumulation in the banking sector.
FAQ
What did Han Seo-hee say about the Clarity Act on May 15?
Han Seo-hee stated on May 15 at a Seoul seminar that the Clarity Act's implication is to induce onshoring of the US digital asset market by rewarding entities that comply with the regulatory system and imposing costs on those that do not. She described the act as comprehensive restructuring of the industry structure.
Why did Tether select Cantor Fitzgerald for reserve asset custody?
Han explained that Tether selected Cantor Fitzgerald because the firm is a Federal Reserve-designated Treasury specialist with abundant liquidity, enabling it to immediately respond to redemption requests by converting US Treasuries to cash. Cantor Fitzgerald holds a significant portion of Tether's reserve assets in US Treasuries.
