a16z Crypto Warns South Korea to Avoid Bank-Limited Stablecoin Issuance

a16z Crypto's Head of Policy Miles Jennings says limiting stablecoin issuance to banks would stifle innovation and competition in the market. Jennings made this statement at the a16z Crypto Korea Summit held on October 1 in Seoul, where he outlined his views on how South Korea should approach stablecoin regulation.

Jennings argued that allowing qualified nonbank companies to issue stablecoins alongside banks would promote a more competitive and innovative market. He pointed out that the US GENIUS Act, enacted last year, has created a pathway for nonbank issuers to enter the market while imposing requirements for reserve assets and anti-money-laundering compliance.

Jennings warned that if South Korea limits stablecoin issuance to banks, it could constrain its companies' access to the global blockchain financial market and deepen its dependence on the US dollar. He emphasized the importance of participation in the legislative process, stating that companies need to communicate their views to the National Assembly and regulators.