Trump signs GENIUS Act: What does this mean for Crypto policy in India?
Synopsis
Donald Trump’s administration took steps to mainstream crypto. The GENIUS Act, recognizing stablecoins, became law. This move impacts the global crypto market, with Bitcoin surging. Pakistan and Bhutan are also exploring crypto reserves. India, a major player, faces regulatory challenges. Stablecoins could benefit India’s remittance sector. India may adopt similar legislation for secure crypto use.
US President Donald Trump has made significant moves to establish crypto as a mainstream financial product. One of the key steps in this direction is the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which he signed into law this past Friday.
The bill was passed by the House of Representatives and the Senate in July with overwhelming bipartisan support. The signing ceremony was attended by the CEOs of top American crypto companies, including Coinbase, Circle, Tether, and Gemini.
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The importance of the GENIUS Act
The GENIUS Act officially recognises stablecoins as financial products and provides a legal and policy framework for them to operate with confidence. Currently, the stablecoin market is worth about $250 billion, with Tether (USDT) and Circle (USDC) accounting for $165 billion and $65 billion, respectively. Stablecoins offer privacy to users and allow faster, cheaper cross-border transactions.
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TOP COIN SETSCrypto Blue Chip – 5-1.27% BuyDeFi Tracker-4.16% BuyNFT & Metaverse Tracker-5.73% BuyAI Tracker-6.41% BuyWeb3 Tracker-6.51% BuyTOP COINS (₹) Solana14,860 (3.27%)BuyXRP264 (1.99%)BuyEthereum324,400 (1.63%)BuyBNB67,334 (0.99%)BuyBitcoin10,059,768 (0.53%)BuySeveral major corporations and traditional financial institutions are reportedly exploring the launch of their own stablecoins. These include JPMorgan Chase, Bank of America, Citigroup, Amazon, Walmart, Uber, Alibaba, JD.com, Revolut, Mastercard, and Standard Chartered Bank. The Act mandates that each stablecoin issued must be backed 1:1 with liquid reserves such as cash or short-term treasuries.
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View Details »Additionally, two more crypto bills have passed the House and are now headed to the Senate — the CLARITY Act (Digital Asset Market Clarity Act of 2025) and the Anti-CBDC Surveillance State Act. Together, these bills aim to establish the US as a global leader in digital finance and the crypto sector.
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Global impact of US crypto legislation
These US developments have had a massive impact on the global cryptocurrency market. Bitcoin (BTC) has surged past $100,000 and is approaching $150,000, pushing the total crypto market valuation past $4 trillion for the first time. A growing number of countries are following suit, including Pakistan and Bhutan. Pakistan’s Crypto Council CEO, Bilal Bin Saqib, revealed that the country is planning to establish a Bitcoin reserve. Meanwhile, Bhutan has disclosed BTC reserves worth $1.3 billion — nearly 40% of its GDP.
What does this mean for India?
India remains a major player in the global crypto space. While it has been a hotspot for Web3 innovation, formal
recognition has been lacking, and the current regulatory landscape remains challenging — particularly due to a heavy taxation regime.
However, the global adoption of stablecoins by mainstream financial institutions and tech giants could signal the beginning of policy changes. According to a government statement in Parliament, India collected Rs 437 crore in taxes from VDA (Virtual Digital Asset)-related income in FY 2022-23. This indicates significant crypto activity despite unclear regulations.
Although users can buy and hold digital assets in India, using them for everyday payments — even stablecoins from KYC-compliant platforms — is still prohibited. While VDAs are acknowledged, India remains in a regulatory grey area awaiting clear legal guidelines.
As the world’s largest recipient of remittances (with $130 billion in 2024), India stands to benefit greatly from the efficiency and low costs of stablecoin-enabled transfers. It seems inevitable that India will adopt legislation to enable the secure, compliant use of stablecoins and other VDAs.
The GENIUS Act offers a potential blueprint: simple licensing procedures, full reserve mandates, and transparency through audits — a model that could benefit Indian investors and regulators alike by fostering trust and innovation simultaneously.
What’s next?
In June, reports indicated that the Indian government was preparing a crypto discussion paper to seek public input on regulation. While this is yet to materialise, it’s not a major concern. A crypto regulation bill has been pending in Parliament since 2021. With updated inputs reflecting the changing landscape of 2025, there is hope the bill will soon be tabled. If passed, it could offer clarity and fuel growth in a sector that can significantly contribute to India’s economic story.
Also read | Aswath Damodaran gives 4 reasons why companies should think twice before parking cash in Bitcoin
(The author, Devika Mittal is the Regional Head at Ava Labs)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
