Bitcoin to all time high: US enacting friendly laws. Will India sense change or opt for caution?

In the world of cryptocurrency, July 14 was globally a very important date for contrasting reasons.

Bitcoin has scaled $120,000 for the first time, a major milestone for the world’s largest cryptocurrency.

Kashif Rizvi (@simplykashif), digital currency influencer, explains to @bhupendrachaube why Bitcoin hit an all-time high, by whose decisive move to structure the industry, how India still remains cautious, and if you should look to invest some money to cash in on the boom: pic.twitter.com/TE4RXNlJBT

— The Squirrels (@thesquirrelsin) July 15, 2025

The day also marked the beginning of ‘Crypto week’ in the US. The week will see the US House of Representatives debate three industry-friendly bills that are likely to provide cryptocurrencies with the US regulatory framework that crypto insiders have long demanded. The Digital Asset Market Clarity (CLARITY) Act of 2025 is a proposed bill aimed at establishing a comprehensive regulatory framework for digital assets in the United States. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act aims to clarify when digital assets like crypto tokens are considered securities or commodities, helping startups avoid legal uncertainty by providing clear regulatory rules. The Anti-CBDC Surveillance State Act would prohibit the Federal Reserve from issuing a central bank digital currency (CBDC), arguing it could enable government surveillance of Americans’ financial activity and threaten individual privacy.

In India, a Dire Warning

On the same day in New Delhi, the Delhi High Court delivered a strong caution against cryptocurrency.  A judge, hearing a case of crypto-linked corruption, denied bail to the accused businessman. During the hearing, the judge also sounded a dire warning: “Dealing in cryptocurrency has profound implications on the economy of our country by way of dissolution of recognised money into the dark unknown and untraceable money”. Justice Girish Kathpalia of the Delhi High Court stated that cryptocurrency transactions could dissolve official monetary instruments into a system of untraceable funds, raising systemic economic concerns.

The reason for Bitcoin to hit a lifetime high is being attributed in large part to these three laws that the US House of Representatives will be debating and voting on. All three have long been on the list of the cryptocurrency operators’ list and are being seen as very friendly towards the industry.

Crypto-friendly Trump

The US under Trump has, in any case, been very friendly towards cryptocurrency, having launched a coin of its own. Within days of taking over, Trump declared the creation of a Strategic Bitcoin Reserve. His executive order says that Bitcoin is the ‘original cryptocurrency’ and that there is a ‘strategic advantage’ in being among the first movers to create such a reserve. The strategic reserve will have other digital assets along with Bitcoin. During his campaign, too, Trump had declared that he wanted to make the US a ‘crypto superpower’, and his election took donations in cryptocurrency. These new laws are a continuation of the strategic moves that Trump had declared. Other countries, too, have made laws that accept cryptocurrency as legal tender or an asset.

India, though, has reflected in the judge’s warning, has been far more circumspect. Cryptocurrency is not legal tender in India, nor have there been any laws considered, but there is a 30 per cent tax on profits made from crypto transactions along with a 4 per cent cess. The RBI has also been consistently sceptical, saying there are risks of money laundering and financial fraud.

But there appears to be a shift in the government’s thinking. Media reports suggest that India began reviewing its cryptocurrency stance due to global shifts, particularly influenced by pro-crypto policies in the U.S. under President Donald Trump. A discussion paper on cryptocurrency regulation, scheduled for September 2024, has been delayed as the government re-evaluates its approach. This review aims to align with global standards, as emphasised during India’s G20 presidency in 2023, which called for a global regulatory framework due to the borderless nature of cryptocurrencies.

Whether India will eventually allow crypto as legal tender might still be some way off. But with the changing global scenario, given India’s technology edge, the change will be welcome.