Clarity Act, September 15th is a turning point…Can it pass within the year?

Summary

Attorney Han Seo-hee analyzes the US Clarity Act's legislative timeline after a cloture motion, outlining the September 15 and October 5 deadlines for passage this year. She explains that the remaining major hurdle is the ethics clause on public officials' digital asset activities, while the act could provide legal certainty and unlock Wall Street crypto investment. The discussion also covers the Korean digital asset tax slated for 2027 and its potential market implications.

• The cloture motion filed just before the August recess sets a September 15 vote to bring the Clarity Act to the Senate floor.
• The main unresolved issue is the ethics provision regulating digital asset sponsorships by public officials and their spouses; other provisions like DeFi/AML are largely settled.
• For the bill to pass in 2023, it must clear the Senate by September 15 and the House by October 5, before the midterm elections.
• If passed, the Clarity Act would distinguish digital securities from commodities, enable registration of spot commodity exchanges and facilitate ETF issuance by financial firms.
• Han Seo-hee notes that such legal clarity could remove a key barrier for Wall Street's active digital asset investment.
• On Korea, the digital asset tax is still set to take effect in 2027, with debate on delay or repeal; unclear rules may cause confusion.
• There is a risk that the tax could prompt money to shift toward tax-advantaged crypto ETFs, though this remains hypothetical.
• Attorneys Seo Dong-ju, Kim Dong-hwan, and Han Seo-hee from Gwangjang Law Firm featured in the Crypto PLUS segment.