The bill received broad support from both sides of the aisle, passing through the House of Representatives and the Senate in July. The signing ceremony was a notable event, attended by leading figures from prominent American crypto firms such as Coinbase, Circle, Tether, and Gemini.
Significance of the GENIUS Act
The GENIUS Act formally acknowledges stablecoins as bonafide financial products. It provides a clear regulatory and legal framework, fostering a more stable and confident operational environment for these digital currencies. The current stablecoin market has reached approximately $250 billion in value, with Tether (USDT) and Circle (USDC) dominating, holding values of around $165 billion and $65 billion, respectively. Stablecoins provide enhanced user privacy and facilitate swifter, more cost-effective international transactions.
Crypto Tracker
Reports indicate that numerous major corporations and established financial entities are considering launching their own stablecoins. This list includes names like JPMorgan Chase, Bank of America, Citigroup, Amazon, Walmart, Uber, Alibaba, JD.com, Revolut, Mastercard, and Standard Chartered Bank. A key requirement of the Act is that all issued stablecoins must maintain a 1:1 backing with readily available liquid assets such as cash or short-term government securities.
Additionally, the House has approved two more pieces of crypto-related legislation, which are now under consideration by the Senate. These are the CLARITY Act (Digital Asset Market Clarity Act of 2025) and the Anti-CBDC Surveillance State Act. Collectively, these bills aim to position the United States as a leading force in digital finance and the broader cryptocurrency sector.
Global Implications of US Crypto Laws
These developments in the United States are having a considerable influence on the global cryptocurrency landscape. Bitcoin (BTC) has experienced a significant price surge, surpassing $100,000 and approaching $150,000, pushing the overall cryptocurrency market capitalization beyond $4 trillion for the first time. Several nations are following suit, including Pakistan and Bhutan. Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, has announced plans to establish a national Bitcoin reserve. Meanwhile, Bhutan has reported owning BTC reserves valued at $1.3 billion, representing almost 40% of the nation’s GDP.
What This Means for India
India maintains a significant position within the global crypto ecosystem. While being a hub for Web3 innovation, it still lacks formal recognition, and faces regulatory obstacles stemming from a substantial taxation system.
However, worldwide integration of stablecoins by major financial firms and tech giants might push policy reform in India. A government declaration in Parliament stated that India raised Rs 437 crore in taxes from VDA (Virtual Digital Asset)-related income in FY 2022-23. This showcases impactful crypto usage, despite the lack of clarity in regulations.
Although users in India can purchase and hold digital assets, utilizing them for regular transactions, including KYC-compliant stablecoins, is still prohibited. Despite the acknowledgement of VDAs, India navigates regulatory obscurity, awaiting clear legal guidelines.
Being the world’s largest recipient of remittances (amounting to $130 billion in 2024), India would gain vastly from stablecoin-based transfers due to their efficiency and low costs. Legislation enabling secure, compliant stablecoin and other VDA use seems inevitable.
The GENIUS Act provides a template: simplified licensing, full reserve mandates, and transparent audits – a model that could benefit Indian investors and regulators by encouraging trust and innovation at the same time.
Future Outlook
Reports this June suggested that the Indian government was preparing a crypto discussion paper to seek public opinion on regulation. While it has yet to be released, it isn’t a major concern. A crypto regulation bill has been waiting in Parliament since 2021. If updated inputs reflecting the current landscape of 2025 are added, the bill can hopefully soon be submitted. If passed, it may offer clarity and advance growth in a sector with significant economic potential.
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)