Global Crypto Regulation Gains Momentum Amid Market and Policy Shifts

India’s Ministry of Finance is in talks with the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) to establish a centralized regulatory framework for crypto exchanges. Under the proposed structure, Sebi may take primary responsibility for market supervision, while the RBI would focus on FDI and cross-border transactions. Officials have highlighted enforcement and monitoring challenges due to the anonymous and global nature of crypto transactions.

Separately, financial advisors in the U.S. increased crypto allocations to client portfolios in 2025, marking the highest rate in the eighth annual Bitwise/VettaFi survey. Stablecoins and tokenization emerged as top areas of interest, with 30% of advisors prioritizing these themes for 2026. Advisor ownership of crypto also hit a record high, with 56% reporting personal holdings.

Colombia recently announced new crypto tax rules aligned with the OECD’s Crypto-Asset Reporting Framework. The regulations require exchanges and custodians to report transaction data to tax authorities, with penalties for non-compliance. Similar initiatives are unfolding globally, as 48 jurisdictions have enacted or are close to implementing CARF-related reporting requirements.

What Are the Global Regulatory Shifts in Crypto?

India’s Ministry of Finance is seeking a unified regulatory approach for crypto exchanges as part of the 2026-27 Budget discussions. Multiple agencies currently oversee different aspects of crypto activity, including taxation and anti-money laundering compliance. The lack of a single regulator has hindered India's ability to fully implement international reporting standards like CARF.

Ripple has taken steps toward MiCA compliance in the EU by securing an e-money license in Luxembourg. This move reinforces its regulatory presence in 43 U.S. states and other jurisdictions. Ripple plans to obtain a full crypto asset service provider (CASP) license to align with European Union market rules.

In the U.S., the Senate Banking Committee released a new version of the CLARITY Act, a 278-page bill aimed at defining digital asset oversight. The bill assigns jurisdiction based on the lifecycle of a digital asset, with the SEC handling fundraising and the CFTC overseeing trading platforms. The legislation also introduces a clear distinction for stablecoins and their yield mechanisms.

What Are the Market Implications of These Regulatory Changes?

According to survey data, crypto allocations by financial advisors hit record levels in 2025, with 32% of advisors investing in crypto for client accounts. This is up from 22% in 2024, reflecting growing institutional and retail interest. Allocation sizes also increased, with 64% of portfolios having more than 2% in crypto.

The proposed CLARITY Act aims to reduce ambiguity by assigning clear regulatory boundaries between the SEC and CFTC. It introduces a "lane system" to categorize digital assets based on their functional use. This approach could clarify the legal status of major tokens like Bitcoin and Ethereum, potentially leading to new all-time highs in the market.

UK political leaders are pushing for a ban on cryptocurrency donations to political parties, arguing that such donations undermine electoral transparency. Committee chairs from seven parliamentary select committees have urged the Labour government to include the restriction in the upcoming Elections Bill. Reform UK, a party that began accepting crypto donations in 2025, would be affected by the proposed ban.

What Are Analysts and Investors Watching Next?

Industry experts remain focused on the implementation of the CLARITY Act in the U.S. If passed, the legislation could reduce regulatory friction for digital asset market participants. Analysts are also watching how major exchanges adapt to stricter compliance requirements under the new framework.

In India, the proposed centralized regulatory regime for crypto exchanges is seen as a step toward aligning with international standards. The government is expected to finalize its approach before the 2026-27 Budget. This could influence India's participation in global initiatives like CARF and improve tax enforcement capabilities.

Stablecoins and tokenization continue to attract interest among financial advisors. With institutional adoption on the rise, analysts are monitoring how new regulations will impact market liquidity and investor behavior. The CLARITY Act and other global initiatives could set new benchmarks for transparency and compliance in these areas.