The U.S. is making headlines with the GENIUS Act, a pioneering step toward clear, focused regulation of stablecoins—digital tokens pegged 1:1 to fiat currency used for payments and settlements. Meanwhile, experts in India are calling for their country to follow suit, urging a tailored regulatory framework that specifically addresses stablecoins instead of imposing sweeping rules across the entire cryptocurrency market.

The Guiding and Establishing National Uniform Innovation in Stablecoins (GENIUS) Act, recently approved by the U.S. Senate Banking Committee, distinguishes stablecoins as a unique financial instrument. This approach sets them apart from other digital assets, which often remain trapped in regulatory uncertainty. Vikram Subburaj, CEO of Giottus, points out that this recognition is crucial—stablecoins play a growing role in digital payments and programmable finance, requiring clear guidelines.

Notably, the Act lays out precise rules on reserve requirements, redemption rights, and a dual licensing system involving both federal and state authorities. These provisions prioritize consumer protection while still encouraging innovation within a well-defined legal framework. “The GENIUS Act’s balance of safeguarding user funds and enabling innovation offers a model India could adopt,” Subburaj notes.

That said, Indian regulators might find a phased approach practical, beginning with a stablecoin-first policy. INR-backed stablecoins, integrated with existing payment infrastructures like the Unified Payments Interface (UPI), could drastically reduce remittance and transaction fees both domestically and internationally.

Supporting this viewpoint, Edul Patel, CEO of Mudrex, highlights the economic upside. “Legal clarity through focused regulation could save Indian users between $6 to $8 billion annually just on remittance fees,” he explains. Patel stresses that such regulation would not only clarify the legal landscape but also strengthen consumer confidence and fuel innovation in digital finance.

Ultimately, adopting stablecoin-specific regulation, as the GENIUS Act demonstrates, could position India at the forefront of digital currency innovation. With a clear, consumer-friendly framework in place, stablecoins could become a powerful tool for financial inclusion, efficiency, and economic growth in the region.