Crypto Regulation: SEC Keeps Clarity Act Option Open As South Korea Confirms 2027 Crypto Tax

Key Insights:

• SEC says it can issue crypto rules if the Clarity Act stalls in Congress.
• South Korea confirms crypto tax will begin on January 1, 2027.
• Market analyst points to Bitcoin’s past market cycles around U.S. midterm elections.

Crypto regulation remains in focus after the SEC said it can issue crypto rules if the Clarity Act does not become law. South Korea also confirmed its crypto tax will begin in 2027, while fresh market commentary examined how Bitcoin has behaved around past U.S. elections.

Crypto Regulation: SEC Hints an Alternative to the CLARITY Act

Crypto regulation is back in the spotlight after U.S. Securities and Exchange Commission Chairman Paul Atkins said the agency is ready to write crypto rules if Congress does not pass the Clarity Act.

Speaking with CNBC, Atkins said the SEC is “ready, willing, and able” to introduce rules that cover much of the same ground as the proposed bill. He said the agency can act under its current powers if lawmakers do not finish the legislation.

Still, Atkins said a law passed by Congress would be the better choice. He explained 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.

The Clarity Act has already moved through the House and was later passed by the Senate Banking Committee by a 15-9 vote on May 14. However, the bill has not yet reached the Senate floor for a full vote. Because of that delay, the SEC is preparing for another path. Atkins said the agency is ready to provide rules if Congress does not complete the bill.

His comments show that the regulator does not want the market left without clear guidance for a long period. At the same time, he repeated that legislation remains the stronger option because it would provide greater certainty for businesses, investors, and regulators.

South Korea Sets January 2027 for Crypto Tax

South Korea has confirmed that its long-delayed crypto tax will finally begin on January 1, 2027. Deputy Prime Minister and Finance Minister Koo Yun-cheol said the government will proceed with the plan rather than delay it again. The tax was initially expected to take effect in 2022, but it was postponed three times.

Under the plan, yearly crypto gains above KRW 2.5 million will face a separate income tax of 20%. When local taxes are added, the total rate will be 22%. Koo said any problems with the system can be fixed after it starts, instead of putting it off once more.

South Korea is one of the biggest retail crypto markets in the world. Some market watchers believe the tax could slow trading after it takes effect. The decision also adds to the wider discussion around crypto regulation as more countries continue to set rules for digital assets.

Bitcoin History Around U.S. Elections Gets Fresh Attention

Market analyst Joao Wedson shared insights into how Bitcoin has behaved around past U.S. elections. According to Wedson, Bitcoin entered a bear market about one year before every U.S. midterm election. He also said the market later moved into a longer bull run after those elections.

He added that Bitcoin has often posted strong gains after a president won an election. However, he said the market later moved toward a major cycle top shortly after the new president took office.

Wedson also noted that Bitcoin has not reached its lowest price at the same time in every cycle. In some years, the bottom came shortly before the midterm elections. In other years, it came just after the vote.

His comments were based on past market cycles and did not predict what would happen next. Even so, many traders continue to monitor political events and crypto regulation for signs that could shape the next move in the digital asset market.

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