Explained | What CLARITY Act in the US mean for Indian investors and how it is different from Indian laws

Explained | What CLARITY Act in the US mean for Indian investors and how it is different from Indian laws | Mint

Explained | What CLARITY Act in the US mean for Indian investors and how it is different from Indian laws

India’s crypto asset regulations focus on strict compliance related to taxation and AML rather than a market regulator. The US Senate’s CLARITY Act is poised to clarify legal structures for digital assets, with potential global implications affecting how countries like India may approach regulation.

The US Senate is expected to vote on September 15 on the CLARITY Act, a bill designed to establish a clear legal framework and market rules for cryptocurrencies and digital assets. Originally called the Digital Asset Market Clarity Act, it passed the House of Representatives with a 294–134 bipartisan majority on July 17, 2025, and the Senate Banking Committee in May 2026.

The CLARITY Act aims to align US rules with existing global frameworks, such as the European Union’s MiCA.

The bill, among others, requires crypto firms to follow Bank Secrecy Act anti-money laundering rules.

It also establishes statutory legal definitions, assigns explicit agency authority and sets clear compliance obligations for industry participants.

Under the proposed law, the Securities and Exchange Commission (SEC) retains oversight over digital assets classified as securities, while the Commodity Futures Trading Commission (CFTC) gains full regulatory jurisdiction over spot markets in digital commodities.

Also Read|What is Clarity Act? How Trump’s crypto push is impacting Bitcoin prices

According to Vikas M Sajdeva, CEO of BitDelta India, CLARITY Act’s core value lies in removing operational ambiguity.

“The CLARITY Act actually reduces regulatory risk premium,” Sajdeva told Mint, noting that it answers fundamental business questions regarding asset classification, jurisdiction, and intermediary obligations.

Muthuswami Iyer, chief compliance officer of BitDelta India, added that this framework aligns the US with international benchmarks like Dubai’s VARA and Singapore’s MAS, standardising conduct, licensing, and capital adequacy expectations.

While it is a domestic law aimed at regulating crypto assets in the US, it is expected to have an indirect impact globally, including in India.

Also Read|Why the crypto industry is more reliant than ever on Trump

In India, crypto assets are regulated through strict compliance guardrails covering taxation, anti-money laundering (AML) and tax reporting, rather than through a dedicated market regulator.

India is unlikely to blindly replicate US laws, experts said, but global developments are accelerating the legitimization of digital assets and shifting crypto from largely speculative trading towards a recognised investment asset class.

According to Iyer, Indian policy discussions evaluate a diverse mix of global practices, including the European Union’s MiCA, Dubai, and Singapore, rather than adopting a single country’s framework.

Sumit Gupta, co-founder of CoinDCX, told Mint that India’s framework rests on three main pillars: tax law (a 30% flat tax and 1% TDS), mandatory anti-money laundering (AML) registration with FIU-IND (Financial Intelligence Unit—India), and direct exchange-to-tax reporting under the Crypto Asset Reporting Framework launching in April 2026.

Sajdeva also pointed out that the two nations operate from different vantage points. While the US is constructing a commercial market structure, India has focused on building compliance guardrails prioritizing financial stability, consumer protection, and AML traceability.

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