# Analysis of U.S. Digital Asset Policies and Domestic Response
### “Digital Assets as a Tool to Strengthen Dollar Hegemony”
### Financial Services Commission: “Will Expedite Second-Phase Legislation”
With the U.S. presidential election just 50 days away, irrespective of the outcome, the U.S. is likely to leverage digital assets to strengthen dollar hegemony and prioritize national interests. South Korea, too, should swiftly amend the Electronic Securities Act and expedite second-phase legislation to stimulate the market in response to this trend.
Senior Researcher Kim Gap-rae of the Capital Market Research Institute highlighted this point during the forum on “Projections of U.S. Digital Asset Policies under the Next Administration and Domestic Countermeasures,” held at the National Assembly Library’s small conference room in Yeouido on the 20th. Kim stated, “While there’s a distinct difference between the stances of Republican candidate Donald Trump and Democratic candidate Kamala Harris on digital asset policies, both share fundamental principles of ‘strengthening dollar hegemony’ and ‘prioritizing national interests.’ Despite the regulatory uncertainties, the U.S. market shows significant long-term growth potential, especially illustrated by the expansion of the Bitcoin spot ETF market.”
However, Kim noted clear differences in detailed digital asset issues despite the shared goals of the candidates. “Trump declared he would not sell the Bitcoin held by the U.S. government and expressed his intention to use Bitcoin as a strategic asset if elected president. Meanwhile, Harris has remained silent on the strategic assetization of Bitcoin, providing no clear stance,” he said. Previously, Trump had announced his intention to hold Bitcoin as a strategic national asset at the “Bitcoin 2024 Conference” in July.
Trump’s statement on Bitcoin as a strategic reserve asset garnered significant attention. A strategic reserve asset, typically accumulated to ensure economic stability and a competitive edge, has a prime example in crude oil. Post-gold standard, the U.S. used oil settlements to bolster dollar dominance. In 1974, the U.S. entered into a secret agreement with Saudi Arabia, the largest oil producer, to settle oil payments exclusively in dollars, exchanging military support for this arrangement. This partnership reinforced the dollar’s status as the global reserve currency.
Professor Jung Yoo-shin of Sogang University, who attended the event, remarked, “Just as the dollar’s influence was maintained through oil settlements after the gold standard, the U.S. will continue to work towards protecting dollar hegemony. Blockchain is likely to play a new infrastructural role in this pursuit.”
### “Will Support Second-Phase Legislation”
Amid the anticipated significant changes in the digital asset market post-U.S. presidential election, there are calls for South Korea to quickly push forward second-phase legislation to bolster the market, following the Token Securities Act and the User Protection Act. Kim Jae-jin, Vice Chairman of the Digital Asset Exchange Association (DAXA), who attended the discussion on “Projections of U.S. Digital Asset Policies under the Next Administration and Domestic Countermeasures,” predicted that the digital asset market would see more opportunities for integration with traditional finance in various areas, including Bitcoin and Ethereum spot ETF approvals and central bank digital currencies (CBDCs).
Kim stated, “Major global countries are systematizing digital asset regulations. Although the election outcome may impact the speed of market developments, the long-term upward trend remains unchanged.” He added, “The crucial issue is how South Korea can secure competitiveness in the burgeoning global digital asset market post-U.S. election.”
Kim Sung-jin, the Financial Services Commission’s Director of Virtual Asset Affairs, affirmed, “We recognize issues such as domestic Bitcoin spot ETF approval and corporate real-name accounts, and we are in ongoing communication with the industry. We will strive to keep pace with global trends.” He further stated, “While monitoring regulatory trends in various countries, including the U.S., we will focus on business conduct and entrance regulations to ensure smooth progress of second-phase legislation.”
The forum, co-hosted by National Assembly Member Kim Jae-seop and the Digital Asset Policy Forum, aimed to analyze the potential impacts of changes in U.S. digital asset policies under the next administration on global and domestic markets, and to discuss corresponding domestic countermeasures.
In his welcoming remarks, Rep. Kim Jae-seop emphasized, “Digital asset issues are closely tied to public livelihood like no other issue, and institutional legislation is essential.” Rep. Kim, who recently showed strong intent to institutionalize token securities by proposing amendments to the Electronic Securities Act and the Capital Markets Act, has commenced preparations in this regard.
