Crypto Regulation Can't Be Left for Another Day

We urgently need to set up a sound regulatory framework for digital assets. Sebi, RBI and the government must come together to fill the vacuum and protect investors before it's too late

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India topped global crypto adoption for the second year in 2024, according to Chainalysis, a US-based blockchain analysis firm, with 119 million investors, nearly one-fifth of all crypto holders worldwide. The US ranked second with 53 million investors, followed by Indonesia with 39. Telling as these estimates are, the ranks could soon change. Last Friday, US President Donald Trump signed into law the Genius Act to create a regulatory regime for stablecoins. American investors, unlike their Indian counterparts, will now have the comfort of a regulatory framework. America's new law requires stablecoins—or crypto tokens whose value is pegged to a regular currency—to be backed by liquid assets such as US dollars and short-term Treasury bills. This enhances their credibility. Issuers must also disclose the composition of their reserves every month.