Market Watch
Things to Watch This Week (June 16 - June 21)
June 18 - U.S. FOMC Interest Rate Decision
The Federal Reserve is widely expected to keep interest rates unchanged during its two-day meeting, despite growing political pressure and softer May inflation data—Fed officials are opting to wait for clearer economic signals.
Random Musing This Week (June 16 - June 21)
Korea’s Digital Asset Push
South Korea’s ruling Democratic Party has proposed the Digital Asset Basic Act, just a week after President Lee Jae-myung, a vocal supporter of digital finance, took office. The bill signals a strategic shift toward embracing KRW-based stablecoins and a more regulated digital asset environment.
Key Provisions:
Allows licensed firms with at least ₩500M (~$364K) in equity to issue KRW-pegged stablecoins, with full reserve backing and FSC approval.
Establishes a Digital Asset Committee under the President’s Office to coordinate national crypto policy.
Brings asset-linked digital tokens under financial product classification, akin to capital market regulation.
Market Impact:
Roughly 20% of South Korea’s population trades crypto, making it one of the world’s most active digital asset markets. The announcement led to a rally in fintech-related equities, notably those tied to likely beneficiaries such as Kakao Pay. While the bill trails Hong Kong’s stablecoin licensing framework, Korea’s centralized approach and ruling party majority could enable faster adoption.
Policy vs. Central Bank Concerns:
President Lee’s appointment of blockchain advocate Kim Yong-beom as Chief Policy Officer adds credibility to the pro-crypto shift. His appointment is expected to influence the formation and direction of the proposed Digital Asset Committee. However, BoK Governor Rhee Chang-yong has warned that private-sector won-based stablecoins could weaken monetary policy, pushing for central bank-led oversight.
The market is closely watching for the rollout of secondary legislation, infrastructure, and real-world KRW stablecoin implementations to follow. As regulatory clarity begins to take shape, South Korea's digital asset industry stands at a potential inflection point.
Recap of Top Stories (June 9 – June 13)
Interesting
XRP Ledger devs plan sidechain launch in Q2 for Ethereum compatibility
Commentary: The XRP Ledger, a blockchain associated with cross-border payments firm Ripple, plans to launch an Ethereum Virtual Machine (EVM) sidechain in the second quarter of this year, aiming to integrate Ethereum smart contracts into its ecosystem.
The sidechain, a parallel-running blockchain, will integrate the XRP Ledger's low-cost transaction capabilities with Ethereum's smart contract functionality. It is being developed by contributors Ripple and Peersyst, leveraging evmOS' software stack.
Payment giant Stripe to buy crypto wallet firm Privy
Commentary: Major payments firm Stripe has agreed to purchase the crypto wallet firm Privy, according to a post to social media on Wednesday. The terms of the deal have not been disclosed.
Stripe buying Privy follows the payments giant's acquisition of the stablecoin platform Bridge in a deal worth $1.1 billion. Three months after the acquisition, Stripe launched a new money management feature using U.S. dollar stablecoins.
GENIUS stablecoin bill passes key vote, advances in US Senate
Commentary: In a 68-30 vote, the US Senate chose to advance the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, more than a month after it was introduced. Majority Leader John Thune urged members of Congress to support the bill, echoing many of US President Donald Trump’s talking points on digital assets, including that the legislation would help make the US the “crypto capital of the world.”
Thune said there was “more work to be done” for Congress in regard to digital assets, referring to a separate market structure bill being considered in the House. On Tuesday, two House committees voted to advance the bill, called the CLARITY Act, potentially setting it up for a full floor vote soon.
House Agriculture Committee advances crypto market structure bill
Commentary: Lawmakers on the US House Agriculture Committee voted in favor of the Digital Asset Market Clarity, or CLARITY, Act, advancing the bill further in Congress.
In a 47-6 vote on Tuesday, an overwhelming majority of lawmakers on the committee approved the CLARITY Act to establish a regulatory framework for digital assets. Committee Chair GT Thompson said the bill would be sent to the House for consideration, adding that any members offering opposing views would have the opportunity to submit them by Friday.
Guggenheim taps Ripple's XRP Ledger to offer tokenized commercial paper in RWA push
Commentary: Guggenheim Treasury Services, a subsidiary of Guggenheim Capital, has launched its Digital Commercial Paper (DCP) on Ripple-affiliated XRP Ledger (XRPL), offering institutional investors exposure to short-term debt instruments through decentralized finance networks, Bloomberg reported Tuesday.
DCP is tokenized and issued by fintech startup Zeconomy. Backed by U.S. Treasurys, the digital asset will leverage the XRP Ledger’s around-the-clock trading capability, fast settlement times, and low-cost transactions. As part of the partnership, Ripple will invest $10 million in Guggenheim’s DCP program, according to Bloomberg.
US Senate set for GENIUS stablecoin bill vote this Wednesday
Commentary: Senate Majority Leader John Thune has set the stage for a key procedural vote Wednesday on the GENIUS Act, a landmark piece of legislation aimed at regulating stablecoins, Bloomberg reported.
Thune filed cloture on Monday on the underlying bill — the Guiding and Establishing National Innovation for U.S. Stablecoins Act — and the bipartisan amendment to it, according to a post on X from the Senate Republican Cloakroom.
South Korean lawmaker proposes stablecoin licensing regime in new comprehensive crypto bill
Commentary: A South Korean lawmaker unveiled a new bill on Tuesday to further establish a regulatory framework around crypto, including a new licensing regime for stablecoins.
The new proposal builds on South Korea's existing law overseeing crypto, the Virtual Asset Investor Protection Act, which came into effect in July 2024. While the first legislation focused on providing a safety net for investors, the new legislation aims to set a comprehensive and structured framework for the local digital asset ecosystem.
Stacks-based Alex Lab to reimburse users after $8.3 million exploit as token drops 45%
Commentary: Alex Lab, a Bitcoin DeFi protocol on the Stacks blockchain, said it would completely reimburse its users using treasury funds after an $8.3 million exploit on Friday.
The protocol’s native token dropped 45% in response to the exploit, which the Alex team blamed on a flaw in the protocol’s smart contract logic. Alex Lab was previously exploited in May 2024 for $4.3 million, in an attack it blamed on North Korea’s Lazarus Group. The recovery process from that attack is still incomplete.
Upcoming Market Events
June 17 - U.S. Retail Sales (May)
June 18 - U.S. FOMC Interest Rate Decision
June 27 - BTC CME June (BTCM25) Options Expiry
July 15 - U.S. CPI (June)