At a time when the crypto industry is still finding its feet, a new proposed law in the US could change the way things work. The CLARITY Act aims to remove confusion around how digital assets are regulated, something that has long held the sector back.
For years, companies and investors have struggled with unclear rules. This has made it difficult to plan, invest, and grow with confidence. Experts believe this new move could mark a turning point.
A STEP TOWARDS CLEARER RULES
According to Ashish Singhal, Co-founder, CoinSwitch, one of the biggest challenges in crypto has been the lack of clear regulation.
He said the CLARITY Act is designed to fix that by clearly defining digital assets and deciding which regulator oversees them. “The biggest constraint in crypto has never been demand or innovation, it has been the absence of clear, consistent regulation,” he explained.
Singhal added that clarity around roles of bodies like the US Securities and Exchange Commission (SEC) and Commodities and Futures Trading Commission (CFTC) will make it easier for businesses to operate without constantly worrying about changing rules. He also pointed out that the Act looks at practical issues like compliance and stablecoins, which have been grey areas so far.
BOOST FOR INSTITUTIONS AND MARKET STABILITY
The new framework could also encourage large investors to step in more confidently.
Singhal said that institutions such as banks and asset managers have always been interested in crypto, but unclear rules have kept them cautious. With better regulation, they can invest with a long-term view.
He said this could lead to more stable capital flows and better risk management, making the overall market stronger and less volatile over time.
Echoing a similar view, Vikaas M Sachdeva, CEO – BitDelta India, said clear rules are essential for any financial asset to grow.
Drawing a parallel, he said when mutual funds in India got proper regulation in the 1990s, it actually helped the industry expand by building trust. “The CLARITY Act represents a similar moment for virtual digital assets,” he said.
WHAT IT MEANS FOR INDIA AND GLOBAL MARKETS
Globally, the move is being seen as part of a larger trend. Regions like the EU and UAE are also working on structured crypto regulations.
Sachdeva said the US decision could influence how other countries, including India, shape their own policies. He pointed out that India has already taken steps on taxation and compliance, but the next stage is clearer classification and stronger regulatory structure.
“Capital and innovation tend to move towards markets that offer predictability,” he said, adding that India has strong potential if it builds a clear and balanced framework.
Singhal also highlighted that clarity does not mean over-regulation. Instead, it creates an environment where businesses can innovate without uncertainty.
Simply put, the CLARITY Act may not solve every problem overnight, but it signals a shift towards a more structured and mature crypto ecosystem. For investors, companies, and countries alike, clearer rules could be the key to unlocking the next phase of growth.
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