Mumbai, 19th July — Former U.S. President Donald Trump signed the GENIUS Act (Guidelines for Establishing Nationally Integrated and Uniform Stablecoins), a landmark U.S. law regulating stablecoins—digital currencies tied to traditional money like the U.S. Dollar—on July 17, 2025.

The act aims to:

• License stablecoin issuers: Companies creating stablecoins must get official approval and follow strict rules.

• Ensure 1:1 backing with fiat currency: Every stablecoin must be supported by an equal amount of real money (like U.S. Dollars) to maintain its value.

• Enforce oversight by U.S. financial regulators: Government agencies like the SEC will supervise how stablecoins operate.

• Promote secure use in global payments and trade: Encourages the safe and regulated use of stablecoins in international business and transactions.

Why It Matters to India

India has restricted private cryptocurrencies but is developing its own Digital Rupee. The GENIUS Act may influence Indian regulatory thinking and offer a model for secure cross-border digital payments.
“This legislation could be a blueprint for India to rethink its digital finance strategy and regulatory structure,” said Rajeev Bansal, Senior Advisor at Mumbai Fintech Forum.

Impact on Indian Business and Trade

• Fintech Boost: Startups in digital payments could benefit from easier integration with U.S.-compliant systems.

• Cheaper Global Transactions: Indian exporters and SMEs may gain from faster, lower-cost settlements.

• Policy Pressure: Indian regulators may be pushed to formalize crypto rules to remain competitive.

• Banking Disruption: Traditional banks could face challenges as stablecoins gain traction in trade and remittances.

• Crypto Market Volatility: Indian exchanges might see higher volumes but also stricter scrutiny.

Risks for India

• Capital Outflows: Stablecoins could make it easier to move money abroad quickly, leading to unregulated capital flight and pressure on India’s foreign exchange reserves.

• Regulatory Lag: Delays in defining clear digital asset laws may cause India to lose its edge in attracting global tech and fintech investments.

• Foreign Dependence: Without domestic alternatives, India may become reliant on U.S.-based digital finance tools, reducing control over its financial systems.

Conclusion

The GENIUS Act positions stablecoins as legitimate financial tools. For India, it signals both an opportunity to modernize and a need to act swiftly. How India adapts will shape its role in the future of digital commerce.