US lawmakers are working on the CLARITY Act, also called the Digital Asset Market Clarity Act, a bill meant to set clearer federal rules for cryptocurrencies.
The bill passed the US House of Representatives with support from both parties in 2025, and it cleared the Senate Banking Committee in May 2026. It still needs to pass the Senate floor, where it requires 60 votes, before the House and Senate can merge their versions and send it to the President.
Media reports suggest the Senate could take up the bill in September. Experts are watching this closely, since the US plays a major role in global crypto markets and institutional investment.
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The CLARITY Act Explained
The CLARITY Act aims to split regulatory responsibility for crypto between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Ashish Singhal, Co-founder of CoinSwitch, said, “By setting clearer regulatory responsibilities and defining how different types of digital assets may be treated, the United States is creating a blueprint for how the sector can operate within established financial rules.” He believes that the move could act as a model for the sector to work within established financial systems.
Rajagopal Menon, Vice President at WazirX, said, “The CLARITY Act does not change the obligations of Indian investors. It provides a reference for how another major market is approaching these questions.”
He added that the biggest change would be a clearer division of duties between the SEC and CFTC. He added that the effect will not be instant, since regulators still need to write and roll out the actual rules even after the bill becomes law.
Edul Patel, CEO of Mudrex, said: “This matters for Indian investors as developments in the US can influence global liquidity, institutional participation, and overall market sentiment.”
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India Yet to Adopt Crypto as Legal Tender
India currently does not treat cryptocurrency as legal tender, though trading and holding remain allowed. Crypto assets fall under the Virtual Digital Asset category, with a 30 percent tax on gains from VDA transfers and a 1 percent TDS on transactions.
CEO of Mudrex, Patel said India’s crypto rules today rest mainly on taxation and anti-money-laundering norms rather than a dedicated market framework. Singhal noted that regulatory design often decides where technical talent and capital settle over time, and a balanced approach could help India retain more of both.
Menon, VP of Wazir, iterated that India does not need to copy the US model outright, but added that the next stage of Indian policy should give users and businesses clear answers on who regulates what.
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