SEC Prepares to Regulate Cryptocurrency Industry as South Korea Confirms Crypto Tax

The US Securities and Exchange Commission (SEC) has hinted at an alternative to the Clarity Act, which aims to provide clearer regulations for the cryptocurrency industry. SEC Chairman Paul Atkins stated that the agency is 'ready, willing, and able' to introduce rules covering much of the same ground as the proposed bill if Congress does not pass it.

The Clarity Act has already moved through the House and was later passed by the Senate Banking Committee with a 15-9 vote on May 14. However, the bill has not yet reached the Senate floor for a full vote, leaving the SEC to prepare for another path.

Atkins emphasized that legislation remains the stronger option because it would provide greater certainty for businesses, investors, and regulators. He also noted that a federal law would give the crypto industry a stable set of rules instead of policies that could change whenever a different administration takes office.

In other news, South Korea has confirmed that its long-delayed crypto tax will finally begin on January 1, 2027. The tax was initially expected to take effect in 2022 but was postponed three times.

The decision also adds to the wider discussion around crypto regulation as more countries continue to set rules for digital assets. Market analyst Joao Wedson shared insights into how Bitcoin has behaved around past US elections, noting that it entered a bear market about one year before every US midterm election and later moved into a longer bull run after those elections.