US Crypto Regulation Shifts: What Does it Mean for India?

The United States is shifting its approach to cryptocurrency regulation from enforcement to formal market rules. In contrast, India has been more cautious in its stance on digital assets.

The GENIUS Act, enacted in July 2025, established a comprehensive federal framework for stablecoin payments in the US. The law will take effect on January 18, 2027, and will require issuers to obtain an appropriate license from a federal or state authority before issuing payment stablecoins.

The GENIUS Act also sets requirements for digital asset service providers, including customer-identification, anti-money-laundering, and sanctions-compliance measures. This regulatory direction is already influencing banks, with a consortium of 21 financial institutions planning to launch a dollar stablecoin in 2027.

Bitcoin, on the other hand, has been treated as a commodity rather than a security by US regulators. The CLARITY Act aims to clarify jurisdiction over other digital assets and establish clearer boundaries between securities and commodities regulation.