India's Central Bank Pushes for Cryptocurrency Ban Amid Regulatory Divide

The Reserve Bank of India (RBI) is urging lawmakers to take a tough stance on cryptocurrency, advocating for a near-prohibition and strict ring-fencing between regulated financial institutions and crypto assets.

The RBI argues that regulating crypto like traditional finance could create a misleading perception of safety, potentially accelerating retail participation and increasing interlinkages with banks, raising 'financial stability' risk.

In contrast to India's push for isolation, the US is moving toward clearer rulebooks and licensing regimes. The Senate is expected to release the final text of the 'Bitcoin Clarity' bill within days, which could reduce legal uncertainty around digital asset regulation.