Min Byung-deok: U.S. Stablecoin Rules Extend Dollar Hegemony Strategy

South Korean Democratic Party legislator Min Byung-deok said on December 12 that the United States views stablecoin regulation as an extension of dollar hegemony strategy rather than mere financial oversight, and that Korea must redesign its digital asset regulatory framework accordingly. Min made the remarks at a seminar titled “U.S. Stablecoin AML Regulatory Framework and Korea’s Specific Financial Information Act (SFIA) Reform Tasks” held at the National Assembly Members’ Hall, Room 3, in the afternoon.

U.S. Stablecoin as Strategic Tool

Min stated that the world is designing a new digital financial order centered on stablecoins, with the United States moving fastest. “The U.S. does not view dollar-based stablecoins as a private experiment, but as a strategic tool to expand dollar hegemony in the digital era,” he said. He noted that the focus of discussion has shifted from “who will issue” to “what regulatory framework will govern stablecoin movement.”

Min highlighted the roles of two U.S. Treasury Department agencies: the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC). “FinCEN focuses on anti-money laundering (AML) and counter-terrorist financing (CFT) obligations, while OFAC emphasizes sanctions compliance,” he explained. “What the U.S. prioritizes is not technical convenience, but the flow of funds and control possibilities.”

He further noted that the U.S. is establishing a comprehensive regulatory framework that extends beyond stablecoin issuance to include payment networks, foreign exchange order, sanctions screening, and asset freezing mechanisms.

Korea’s Regulatory Gap

Min argued that Korea’s current exchange-centric regulatory approach is insufficient. “The key question is whether we will continue viewing digital asset regulation through an exchange lens, or shift to a function-based regulatory framework that includes issuers, custodians, wallet operators, and foreign operators,” he said.

Given that stablecoins have already expanded into payment, remittance, and settlement infrastructure, Min emphasized that focusing only on exchanges is no longer adequate. “We must newly design responsibility structures for who issues, who holds, who transfers, and who controls risk,” he stated.

Broader Implications

Min framed the issue beyond technical regulation as a matter of currency sovereignty. He warned that if dollar-based stablecoins become the standard for global remittance and settlement, Korea may face reduced influence for the won. “This is both an industrial competition issue and a currency sovereignty issue,” he said.

Min called for Korea to understand precisely what the U.S. is preparing and to proactively review how these changes will affect Korea’s financial market and legal framework. He identified specific unresolved issues, including issuer responsibility, functional obligation allocation, risk-based approaches, domestic circulation standards for foreign-issued stablecoins, and customer verification and transaction restriction measures.

Min concluded that the core of digital asset institutionalization lies not in choosing between prohibition and permission, but in designing a trustworthy order. “The balance is key: protecting users while not shrinking markets, maintaining global alignment while fitting Korea’s reality,” he said.