US Seeks Global Crypto Rules, Eyes India as Key Partner in Framework

The conversation, held under Chatham House Rules on Wednesday (local time), underscored that digital assets -- by their nature -- operate across borders, making international coordination essential to avoid regulatory fragmentation.

Participants said Washington is increasingly focused on building interoperable frameworks that can be adopted across jurisdictions. The goal is to reduce compliance complexity, lower costs and enable smoother movement of capital in a rapidly digitising global economy.

There was broad agreement that no single country can regulate digital assets in isolation. Cross-border cooperation, both bilateral and through multilateral forums such as the G20, was identified as critical to developing common standards.

India was highlighted as an important player in these discussions, given its scale, growing digital economy and experience in building large public digital systems.

Participants said that India's role in earlier global policy efforts on digital finance has already been significant, and future engagement could deepen as the technology matures.

Several participants noted that while the United States is moving towards a more innovation-driven framework, India has taken a more cautious stance, particularly on issues such as capital controls and monetary sovereignty.

Participants noted that these differences reflect varying economic structures and policy priorities, but said there is still scope for convergence over time.

Cross-border payments were one area of potential cooperation identified during the discussion. Digital assets could reduce friction in international transactions, an issue of particular relevance to countries like India with large remittance flows.

There was also emphasis on the importance of setting global norms. Participants stated that countries that move early to establish credible regulatory frameworks are more likely to shape international standards.

In this context, collaboration between major economies such as the United States and India could influence how digital asset markets evolve globally.

At a broader level, participants said digital assets are becoming part of a larger shift in financial infrastructure, alongside advances in artificial intelligence and digital payments.

They stressed that cooperation between democracies will be important in ensuring that emerging technologies are governed by transparent and rules-based systems.

Participants said the challenge ahead will be to balance national priorities with the need for global coordination, as digital finance continues to expand across borders.

They added that deeper engagement between the United States and India could play a decisive role in shaping the future architecture of digital asset regulation.

- IANS