What the US CLARITY Act could mean for India’s crypto future – Expert says, ‘rules must fit India’s large market’

The Republican-led Senate Banking Committee on Thursday advanced the long-awaited CLARITY Act, a landmark bill aimed at creating regulations for cryptocurrencies after months of delays caused by tensions between crypto firms and banks.

The bill, which was advanced with support from two Democrats, will now proceed to the full Senate, setting the stage for a fierce lobbying fight.

Expert notes that it marks a significant moment for the global crypto industry as it seeks to provide long-awaited regulatory clarity to a sector that, despite over 40% of Americans already having exposure to digital assets, has operated for more than a decade without a clearly defined legislative framework.

How CLARITY Act can strengthen the crypto sector?

What makes this development important is that the conversation is now shifting from uncertainty towards structured policymaking, says Ashish Singhal, Co-Founder at CoinSwitch

“As institutional participation in crypto continues to increase through ETFs, traditional finance integration, and broader market adoption, clearer frameworks become essential for long-term capital allocation and industry growth,” he adds

The market sees the CLARITY Act as a sign that US crypto regulation is entering a more mature phase that could eventually shape global digital asset rules.

Steven McWhirter, Global Policy Lead at Binance, comments, “While the legislative process remains ongoing, we recognise the importance of continued bipartisan efforts between policymakers, regulators and industry participants to help bring forward a balanced and workable framework for digital assets that supports responsible innovation while reinforcing high standards around consumer protection, market integrity, transparency and financial crime compliance.”

What it means for India?

For India, developments like the CLARITY Act are important because global crypto regulation is now moving from fragmented enforcement towards formal market structure frameworks.

“Over the last few years, we have seen multiple major jurisdictions, including Europe through MiCA, Singapore, the UAE, Hong Kong, and now the U.S., create clearer operating pathways for digital asset businesses. While the approaches differ, the broader direction is becoming increasingly consistent: bringing crypto into regulated financial infrastructure rather than treating it as a parallel system,” Coinswitch co-founder adds

This gives India a meaningful advantage because the country now has multiple global regulatory playbooks to learn from instead of building policy frameworks entirely from scratch.

What India should follow while creating its own regulatory framework?

Singhal advices while creating its own framework should avoid replicating any one jurisdiction, but to build crypto rules that fit its own large market, strong fintech ecosystem, digital infrastructure, and growing base of retail investors.

“Over the long term, countries that provide regulatory clarity are more likely to attract innovation, institutional participation, talent, and capital in the digital asset economy.”