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The U.S. GENIUS Act regulates stablecoins as distinct financial instruments. Indian experts suggest India adopt a similar framework for INR-backed stablecoins.
The recent developments in the GENIUS Act has brought the US one step closer to regulating the $250 billion stablecoin market.
As the U.S. takes a major step toward regulating stablecoins with the GENIUS Act, Indian crypto experts say it’s time for India to follow a similar path—by building a stablecoin-specific framework instead of sweeping regulation across the entire crypto landscape.
The Guiding and Establishing National Uniform Innovation in Stablecoins (GENIUS) Act, recently cleared by the U.S. Senate Banking Committee, proposes a clear framework for “payment stablecoins”—digital tokens backed 1:1 by fiat, meant for payments and settlement. According to Vikram Subburaj, CEO of Giottus, the Act is significant because it treats stablecoins as a distinct financial instrument, similar to money market funds, separating them from the regulatory ambiguity surrounding other digital assets.
It also recognises the systemic importance of stablecoins in the evolving architecture of digital payments and programmable finance. The customer-centric provisions are clearly laid out. Its provisions for reserve requirements (cash, bank-insured deposits etc); clear redemption rights; and dual licensing (federal and state-chartered) are clearly aimed at safeguarding user funds, all the while allowing ample scope for innovation within a defined compliance perimeter.
Subburaj notes that the Act includes strong consumer safeguards—reserve requirements, redemption rights, and dual licensing—that protect users while promoting innovation. He believes India could benefit from a similar phased strategy. “A stablecoin-first policy like the GENIUS Act could offer a pragmatic entry point for Indian regulators,” he said, adding that INR-backed stablecoins can integrate with systems like UPI and lower remittance and transaction costs domestically and globally.
Echoing this, Edul Patel, CEO of Mudrex, emphasized that a targeted regulatory approach would bring legal clarity, boost innovation, and strengthen consumer trust. “Facilitating stablecoin use in remittances alone could save Indian users $6–8 billion annually in fees,” he said, highlighting the economic potential.
Such regulation would offer much-needed legal clarity, increase consumer protection, and open doors for innovation in digital finance, he added.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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