The hearing of the US digital asset bill "CLARITY Act" begins, and Trump's encryption layout triggers heated debate between the two parties again

The U.S. Congress convened a hearing for the "Digital Asset Market Clarity Act" this morning on 6/5, aiming to clarify the responsibilities of the SEC and CFTC in regulating crypto assets and platforms. However, the hearing was derailed by President Donald Trump's crypto market strategy, sparking controversy. Several Democratic lawmakers strongly criticized Trump for potential conflicts of interest, which delayed the bill's review process. The hearing for the CLARITY Act was primarily meant to define the jurisdictional scope of SEC and CFTC, but was sidetracked by Trump's crypto market positioning. Multiple Democratic members questioned Trump's potential crypto profiteering, demanding an "conflict of interest clause" be included in the bill, otherwise withholding support and causing delays in the review process. The hearing will be held again, with the Senate participating next week. Yonhap News reported that Lee Jae-myung of the Democratic Party of Korea was officially inaugurated as the 21st President of South Korea in the National Assembly this morning (June 4). This election followed the impeachment of former President Yoon Suk-yeol, with a voter turnout of 79.4%, the highest in 28 years. He received 49.42% of the votes, totaling 17,287,513 votes. The new government of South Korea, a crypto trading powerhouse, has drawn particular attention for its potential crypto policy.

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A Worker and Lawyer by Origin, the New President Once Involved in a Corruption Case

When the former president Yoon Seok-yeol declared martial law, the then opposition party leader Lee Jae-myung directly livestreamed climbing into the National Assembly building to vote for presidential impeachment. After Yoon Seok-yeol was impeached, the lawyer-turned-politician Lee Jae-myung was also considered a strong contender for the next president. He worked in a factory during his youth and later became a lawyer. During his political career as the Gyeonggi Province governor, he was well-regarded for handling the pandemic, but he was also involved in a judicial controversy, suspected of corruption. He was also attacked in Busan last January.

(National Assembly 100% Voted to Lift Martial Law: South Korean President Yoon Seok-yeol's Last Dance, Ending the 2-Hour Martial Law Farce)

The New South Korean President's Son Once Sexually Harassed aespa Member Karina

Another piece of gossip is that during the recent presidential debate, Reform New Party candidate Lee Jun-seok mentioned that Lee Jae-myung's son Lee Dong-hoo was involved in illegal gambling and would sexually harass female celebrities online. For example, he commented on aespa member Karina's photo: "I want to eat her." This incident also sparked heated discussion.

What Impact Will the New South Korean Government Have on the Crypto? BTC ETF Legalization and Adjusting Income Tax Thresholds

Regarding crypto policy, Lee Jae-myung once advocated for BTC ETF legalization. His Democratic Party had also proposed similar claims but had not implemented them further.

(South Korean Presidential Candidate Promises: Will Promote BTC ETF Legalization and Create a Youth-Friendly Investment Environment if Elected)

On crypto tax law, the Democratic Party had proposed raising the crypto tax deduction to 50 million Korean won. In the income tax law amendment proposed by Democratic Party lawmaker Jung Tae-ho, the deduction would be revised from 2.5 million won or less to 50 million won or less. Additionally, the amendment includes a new clause that if taxpayers cannot confirm the actual cost price of crypto, they can use a certain percentage of the transaction amount (up to 50%) as a substitute. This means that half of the transaction income can be tax-exempt.

Mentioning this proposal inevitably brings up the previous Democratic Party's cooperation with the government to abolish the financial investment income tax (abbreviated as financial investment tax). However, the Democratic Party's stance of abolishing the financial investment tax while accelerating crypto taxation may face opposition from investors. But the Democratic Party believes that expanding the deduction is essentially equivalent to canceling taxation, as investors with annual revenues exceeding 50 million won are a minority, and the taxation effect is minimal.

A relevant person from the Finance Committee explained: "With a deduction of 50 million won and calculating at a 5% yield rate, the investment amount needs to reach 1 billion won or more. This means most investors will no longer be within the taxation scope, with only a few large investors affected."