Ripple’s Chief Technology Officer, David Schwartz, has confirmed that the Ripple USD (RLUSD) stablecoin can be temporarily halted or reversed to comply with legal or regulatory requirements.
Schwartz’s statement comes after Senator Bill Hagerty updated the GENIUS Act. The bill requires stablecoin issuers to implement technology that allows freezing, seizing, or stopping transfers when legally mandated.
Ripple Technology Enables Freezing of RLUSD Stablecoin
“Requires the permitted payment stablecoin issuer to seize, freeze, burn, or prevent the transfer of payment stablecoins issued by the permitted payment stablecoin issuer.”
Attorney Jeremy Hogan took to social media platform X (formerly Twitter) to question the bill’s practical implications. He particularly stressed the technological capabilities required for stablecoin issuers to implement the proposed rule.
“So, can Ripple or Circle actually freeze RLUSD or USDC once it’s transferred? I didn’t think that was possible for either,” Hogan posted.
In response, Schwartz confirmed that this is indeed possible.
“RLUSD can be frozen or clawed back,” he answered.
Schwartz clarified that this functionality is essential to ensure that the balances on the ledger remain aligned with the legal obligations of the issuer. Since off-ledger events, like court orders, can change or nullify those obligations, it’s important for issuers to have the ability to update the ledger as needed.
It should be noted that in January, the XRP Ledger (XRPL) activated the clawback amendment. This followed a 90% vote from its community.
This change allows token issuers to retrieve tokens from wallets that have been deposited into Automated Market Maker (AMM) pools. This, in turn, helps maintain adherence to regulatory requirements. Given that RLUSD is natively issued on both the XRP Ledger and Ethereum (ETH) blockchains, the clawback functionality applies to it as well.
The bill also stipulates federal oversight for stablecoin issuers with market values exceeding $10 billion. At present, only Tether (USDT) and USD Coin (USDC) meet this threshold.
Meanwhile, RLUSD is a relatively new stablecoin. Ripple launched it on December 17, 2024. In addition, BeInCrypto data shows that it currently has a market capitalization of 135.1 million.
Therefore, as per the act, it will remain under state regulation. However, the state should also follow a framework comparable to federal standards.
South Korea’s cryptocurrency market is undergoing a pivotal shift in 2025, moving from a retail-driven boom toward a more institutionalized and regulated framework.
Four policy pillars define this transformation. First, the government plans phased corporate participation. Second, regulators design frameworks for spot Bitcoin ETFs and pegged stablecoins. Third, authorities enforce strict measures against unregistered operators and KYC breaches. Fourth, the central bank pauses CBDC development. Instead, it favors bank-led stablecoin pilots.
National Agenda and Legislative Challenges
BeInCrypto previously reported key policy developments under President Lee Jae-myung. The Presidential Committee on Policy Planning designated “building a digital asset ecosystem” as a national policy agenda. This agenda falls under the “innovative economy that leads the world” banner. The Financial Services Commission (FSC) oversees this policy task.
However, specific implementation details remain undisclosed. Currently, only task titles are public. The industry refers to Lee’s campaign pledges for clues about future plans. These pledges include approval of spot ETFs, legalization of security tokens, and introduction of domestic won-backed stablecoins.
However, the plan faces uncertainties. The initiative does not rank among the 12 top-emphasized strategic priorities, and the FSC’s role faces uncertainty amid potential government restructuring. Implementation requires revising or enacting 951 laws and regulations. The government targets 87% of amendments for National Assembly submission by next year. Although the ruling party holds a substantial majority and opposition leaders support crypto development, rapid legislative progress is unlikely.
Regional competition adds urgency. The US GENIUS Act has accelerated global adoption of dollar-based stablecoins, raising concerns in Korea about monetary sovereignty. Neighboring hubs are advancing quickly: Japanese firms are building digital asset reserves, Hong Kong has enacted comprehensive stablecoin rules, and Singapore doubled crypto exchange licenses in 2024. BeInCrypto noted these moves will likely intensify Korea’s legislative debates on stablecoin regulation, alongside the gradual expansion of corporate accounts, ETFs, and leverage products on domestic exchanges.
Regulatory Overhaul
On Feb. 13, the FSC unveiled a roadmap to lift the 2017 ban on corporate crypto trading. In H1 2025, nonprofits and public agencies may sell existing holdings; in H2, listed companies and qualified institutional investors can trade on a trial basis. This aligns with global trends and leverages the Virtual Asset User Protection Act (effective July 2024) to protect users and ensure fair markets.
In June, the FSC submitted an implementation plan for domestic spot Bitcoin ETFs and a KRW stablecoin to the Presidential Committee. The roadmap covers custody, pricing, investor protection, and fee reduction. While the current law does not allow spot ETFs, President Lee’s pro-crypto administration supports the reforms.
The Bank of Korea (BOK) has slowed its CBDC project, halting a planned pilot in late 2025. Instead, it backs a “banks-first” stablecoin model and reinforces its cautious stance over time.
“It is desirable first to allow banks under a high level of regulations to issue won-based stablecoins and gradually expand to the non-bank sector with the experience,” said Yu Sang-dae, BOK senior deputy governor.
Four major Korean banks are actively preparing for KRW-pegged stablecoin issuance ahead of expected legislation. All four banks – KB Kookmin, Shinhan, Hana, and Woori – are scheduled to meet with Circle CEO Heath Tarbert during his visit to Korea next week.
The Ministry of SMEs and Startups proposed amending the venture law to allow crypto firms to register as venture companies, unlocking subsidies, tax incentives, loan guarantees, and government-backed funds.
Enforcement Actions
Enforcement actions underline regulators’ resolve. In February, the Financial Intelligence Unit (FIU) ordered Upbit to halt new customer transactions over AML breaches, including dealings with unregistered foreign exchanges and lax KYC. A Mar. 27 court injunction allowed onboarding to resume pending final ruling.
In May, the Digital Asset eXchange Alliance (DAXA) delisted WEMIX for the second time, citing disclosure failures and a $6.6 million theft, causing a 60% overnight price drop.
Authorities also pressed Google and Apple to remove unregistered exchange apps.
KRW is the world’s second-most traded fiat in crypto, reaching $663 billion year-to-date volume — about 30% of global fiat-crypto activity. Nearly one-third of Korean adults hold digital assets, double the U.S. adoption rate.
Upbit holds 69% of the domestic market as of February, while Bithumb has rebounded to 25% ahead of its plan to list on KOSDAQ in late 2025. Bithumb’s private shares are up 131% this year to 238,000 won, while Upbit operator Dunamu’s rose 33% to 240,000 won, valuing it at 8.26 trillion won. Both peaked in July before moderating.
Smaller rival Coinone, with 3% share, sold 10% of its assets to fund operations — the first sale under the new May guidelines for regulated liquidation. Coinone has posted three years of operating losses and cut staff, fueling acquisition speculation.
MAIN PLAYERS IN KOREA’S CRYPTO MARKET. Source: Kaiko
The kimchi premium — Korea’s price gap vs. global markets — swung sharply: above 10% in February, negative by late July, then stabilized at 2–3% in August. Analysts tie this to liquidity shifts under tighter compliance.
Infrastructure and overseas expansion are advancing. Kaia, a merged venture of Klaytn and Finschia, each respectively started by the country’s top tech giants, Kakao and Naver, aims to be Asia’s first compliant Layer-1 blockchain. Dunamu is expanding into Vietnam, boosting Korea’s global reach.
Geopolitically, South Korea is key in countering North Korean crypto theft. On Jan. 14, it joined the U.S. and Japan in a joint statement warning that DPRK actors stole over $600 million in 2024 to fund weapons programs.
“South Korea’s ability to pair strict compliance with market innovation makes it a unique test case for global regulators,” said Park Ji-hoon, Seoul-based fintech policy analyst.
Outlook
The base-case scenario includes finalizing the ETF framework, launching the bank-led stablecoin pilot, and expanding corporate trading. These could repatriate capital, deepen liquidity, and improve asset quality via stricter listings. Risks include overregulation, prolonged legal disputes (e.g., Upbit), offshore migration from heavy FX rules, and contagion from token delistings.
Key performance indicators for 2026: ETF legalization, stablecoin rollout, FIU’s Upbit ruling, Bithumb IPO results, and adoption of Kaia and blockchain gaming projects.
South Korea’s strategy of tightening compliance while fostering innovation could cement its role as a crypto-financial hub. By channeling domestic capital into regulated markets and supporting infrastructure growth, it aims to balance investor protection with market expansion. The next year will be critical in determining whether this balance holds and whether Korea’s global influence grows.
Since US President Donald Trump assumed office, the Securities and Exchange Commission (SEC) has dropped, settled, or paused lawsuits against prominent crypto entities left and right. In stark contrast to the previous administration’s leadership under Chair Gary Gensler, the SEC seems to be parting from its previous crackdown on digital assets.
In an interview with BeInCrypto, Nick Puckrin, Founder of The Coin Bureau, and Hank Huang, Chief Executive Officer at Kronos Research, highlighted the substantial election influence the crypto industry had over Trump’s candidacy as a contributing factor to the SEC’s looser stance on crypto.
The SEC’s Approach Under Trump
The SEC has experienced a clear shift in its approach to crypto lawsuits under Trump’s presidency. Its move away from the aggressive enforcement tactics of its previous leadership has largely characterized this shift.
“When President Donald Trump won the US election, the crypto industry rejoiced. Finally, the ‘regulation by enforcement’ era, which the SEC under the leadership of Gary Gensler was so famous for, was about to come to an end. And the new administration didn’t disappoint. Within just a couple of weeks of Trump’s inauguration, the revamped SEC started dropping lawsuits against crypto firms left, right and center,” Puckrin said.
Two weeks ago, the SEC officially dropped its appeal and XRP lawsuit against Ripple Labs, ending a five-year legal battle. The Commission had originally accused Ripple of conducting an unregistered securities offering worth $1.3 billion through XRP sales.
“After more than four years in limbo, the SEC has officially decided that XRP is not a security (though what it is instead remains to be seen). This case has been weighing heavily on XRP – the fourth largest cryptocurrency with a market cap of roughly $130 billion– so its resolution is a major win,” Puckrin added.
The wider crypto community celebrated the outcome, with many arguing that it will set a precedent for how digital assets are classified in the US. This prediction is warranted, given that the SEC has been on a lawsuit-dropping spree.
The SEC has also dropped several ongoing investigations against OpenSea, Robinhood, Uniswap Labs, Kraken, and Gemini. It has also asked a federal court to issue a 60-day pause over its litigation against Binance. Meanwhile, the Commission settled its investigation into ConsenSys over its Ethereum software products.
These lawsuits surfaced in parallel to a series of crypto-friendly measures meant to foster greater innovation and curb potential regulatory suffocation that had existed during the Biden era.
Will New Leadership Define Clear Crypto Regulations?
A day after Trump assumed office, SEC Acting Chairman Mark Uyeda announced the creation of a dedicated crypto task force led by Commissioner Hester Peirce. The task force was reportedly designed to resolve long-standing ambiguities in the regulatory treatment of digital assets.
In all SEC crypto lawsuits, Commissioner Uyeda has implemented a strategy prioritizing industry engagement to develop regulatory frameworks that balance innovation and investor protection.
Meanwhile, Trump strategically nominated Paul Atkins, a crypto-curious, regulation-light candidate, to replace Gensler as head of the SEC. Just this week, the Senate Banking Committee voted to advance Atkins’ nomination to the full Senate.
Now, only a stone’s throw away from becoming SEC Chair, Atkins is expected to loosen regulatory oversight on crypto.
“With the establishment of a new Task Force and key appointees like Paul Atkins fostering innovation, Trump’s strategic move to create a Bitcoin reserve within the government further underscores his commitment to supporting the industry. The future of crypto regulations will be focused on less oversight and the beginning of a delicate but promising thaw in the regulatory landscape,” Huang added.
Though some say Trump’s handling of crypto affairs has resulted in a never-before-seen triumph, others are weary that his increasing involvement in the industry has turned out to be a recipe for disaster.
The Impact of Crypto Donations on Regulations
Several industry leaders went to great lengths to ensure that Trump became America’s 47th president. Millions of dollars in donations from crypto firms throughout Trump’s campaign illustrated these efforts.
According to a Public Citizen report, over $119 million from crypto corporations went into influencing the 2024 federal elections, largely through Fairshake, a non-partisan super PAC backing pro-crypto candidates and opposing skeptics.
Crypto corporations donated over $119 million to the 2024 federal elections. Source: Public Citizen
Coinbase and Ripple, among others who stand to profit, directly provided over half of Fairshake’s funding. The remaining funds mostly came from billionaire crypto executives and venture capitalists. Notable contributions included $44 million from the founders of Andreessen Horowitz, $5 million from the Winklevoss twins, and $1 million from Coinbase CEO Brian Armstrong.
So far, big crypto’s spending strategy is paying off with a more favorable environment.
Without a clear framework to guide the crypto industry following these dropped lawsuits, this lax approach risks being short-lived. Ultimately, this could tarnish long-term crypto adoption.
“Somehow, all these victories feel somewhat hollow after the reputation of the crypto industry has been tarnished by the billions of dollars in combined losses from meme coin scams. Meanwhile, Hayden Davis, the mastermind behind LIBRA, continues to launch fraudulent meme tokens, despite being on the Interpol wanted list,” he said.
A 2024 report by Web3 intelligence platform Merkle Science revealed that meme coin rug pulls cost investors over $500 million. The February LIBRA incident showed how this trend was carried over to 2025. Nansen data revealed that 86% of investors lost $251 million, while insiders pocketed $180 million in profits.
Though crypto scammers may be charged with related crimes like wire fraud or money laundering, rug pulling is legal. Better said, it’s unaccounted for. No regulation holds crypto insiders responsible for meme coin scams.
“As crypto becomes an ever more mainstream asset class, consumers need to be protected against those who choose to use it for nefarious purposes. One way to do this is through education, and that’s our job as an industry. But deterring scams and extractive behavior is the job of the regulators. And it’s time they stepped up to the task,” Puckrin told BeInCrypto.
If the SEC doesn’t take advantage of this opportunity to curb the consequences that meme coin scams can produce, it will result in an enormous setback for the industry.
Comprehensive Regulation Beyond Dropped Lawsuits
Puckrin illustrated the need for heightened regulatory clarity in crypto by drawing attention to the way the SEC penalizes insider trading in the context of traditional investing.
“In traditional investing, insider trading is a serious crime. In the US, it’s punishable by fines of up to $5 million for individuals and prison sentences up to 20 years. Similarly, federal penalties for engaging with illegal gambling activities include up to five years in prison. Perpetrators of memecoin scams must be punished with the same level of severity, because the result is the same: manipulating markets and cheating unsuspecting investors out of their savings,” he said.
Puckrin clarified, however, that the issue isn’t solely about penalizing fraudsters. Just as the SEC’s past overregulation hindered the industry, the current lack of meme coin rules creates an environment where new scams and exploitative schemes can easily flourish.
“Yes, the removal of lawsuits is great news for blockchain innovation, but something needs to replace it. Indeed, serious cryptocurrency firms have never advocated for an unregulated Wild West. What they want is clarity and rules that are fit for the nascent blockchain industry – not just a copy-and-paste of existing financial regulations that simply don’t work for crypto,” he said.
Although the Trump administration has only been in place for four months, the clock is ticking, and meaningful change takes time.
Unanswered Questions Loom
Puckrin expressed concern over the current administration’s prioritization of lawsuit dismissals instead of working faster to implement transcendental crypto regulation.
“My concern is that regulators will keep kicking the can down the road with crypto regulation, having gained the approval of the industry for dropping the many lawsuits that were stifling its growth. And this is incredibly dangerous,” he told BeInCrypto.
Meanwhile, critical questions that only the SEC can define remain unanswered.
“What are memecoins and who will ensure another LIBRA fiasco doesn’t happen? Are utility altcoins now commodities and if so, will the Commodities Futures Trading Commission (CFTC) regulate them? And, importantly, what do we do about compensating investors who have lost billions to crypto fraud?” Puckrin concluded.
The SEC’s current direction promises a regulated renaissance or a breeding ground for future crises.
With billions lost and critical questions unanswered, the future of crypto hinges on whether the regulatory body will translate its recent shift into a lasting framework that fosters innovation without sacrificing investor protection.
