India’s RBI Urges Crypto Ban as Global Regulatory Divide Widens

India’s central bank has urged lawmakers to take a near-prohibitive stance on crypto assets and privately issued stablecoins, underscoring a widening policy divide as the U.S. and Europe move toward clearer rulebooks and licensing regimes.

In comments submitted to the Indian Parliament’s Standing Committee on Finance, the Reserve Bank of India (RBI) said a ban on crypto assets remains a “key option” within global regulatory frameworks, according to PANews. The RBI argued that regulated financial institutions—particularly banks—should be kept completely separate from crypto assets and privately issued stablecoins, effectively advocating a ring-fenced financial system that prevents traditional intermediaries from touching these markets.

The central bank also warned that regulating crypto in the same manner as traditional financial products could inadvertently confer an aura of safety on what it described as high-risk speculative instruments. In the RBI’s view, that perception risk could amplify threats to ‘financial stability’ by encouraging broader participation and deeper interconnectedness between crypto markets and the banking sector.

On stablecoins, the RBI reiterated long-standing concerns that widespread adoption could weaken ‘monetary sovereignty’ and disrupt monetary policy transmission and payment systems. It used the submission to reaffirm its preference for a central bank digital currency (CBDC) as the foundation for India’s digital payments infrastructure, positioning a sovereign alternative as the primary route for modernization rather than reliance on private issuers.

The RBI’s hardline messaging arrives as policy signals elsewhere appear to be shifting toward codified oversight rather than outright restriction. In the U.S., Bloomberg reported the Senate is expected to release the final text of the ‘Bitcoin Clarity’ bill within days—potentially during the Independence Day holiday period—according to journalist Pete Rizzo. While details of the final language were not yet public, the market is watching for whether the measure meaningfully reduces legal uncertainty around digital asset regulation in the world’s largest capital market.

Investor flows suggested that sentiment may be stabilizing despite mixed macro and regulatory narratives. On July 2 ET, U.S.-listed spot Bitcoin (BTC) ETFs recorded net inflows of $222 million, reversing a streak of 10 consecutive trading days of net outflows, according to data cited by Wu Blockchain. Spot Ethereum (ETH) ETFs also posted net inflows of $29.08 million the same day.

Bitcoin traded above $62,000, rising 1.33% over the past 24 hours to around $62,015 on OKX pricing, according to ODaily, a move that coincided with the improvement in ETF flow data and broader risk appetite in crypto markets.

In Europe, Stripe’s stablecoin payments platform Bridge secured both a MiCA-aligned ‘crypto-asset service provider’ (CASP) license and an electronic money institution license in Luxembourg, PANews reported. The authorizations are valid across the EU’s 27 member states, enabling Bridge to expand stablecoin services for European customers and deepen its core offering that helps enterprises and developers convert funds between stablecoins and euros.

In Washington, SEC Chair Paul Atkins said the agency is modernizing rules to bring financial markets ‘on-chain,’ according to Watcher.Guru. The remarks point to an ongoing push to adapt regulatory frameworks for tokenized finance infrastructure, even as the SEC continues to police digital asset activity through enforcement and guidance.

That on-chain shift is increasingly visible in capital markets experiments. Tokenization firm Securitize launched a tokenized version of its SECZ stock on Solana (SOL) and Avalanche (AVAX) at the same time the shares began trading on the New York Stock Exchange, according to PANews citing The Block. SECZ opened at $12.45, hit an intraday high of $13.70, and closed at $12.30. Securitize said on-chain issuance is intended to broaden global access and support 24/7 trading.

Securitize President Bret Redfearn said the firm is discussing IPO allocation tokenization with capital markets divisions at major investment banks including JPMorgan Chase ($JPM), and suggested tangible progress could emerge within three to 12 months. The company said its model relies on issuer sponsorship, and that tokenized shares are structured as securities designed to carry conventional shareholder rights such as voting and dividends.

On the funding front, crypto payments company Mesh is reportedly raising a new round led by Binance that could value the firm at up to $2 billion, PANews reported citing Axios. The talks highlight continued investor interest in payments infrastructure as exchanges and fintech players compete to build rails that connect traditional money movement with digital assets.

Meanwhile, real-world asset (RWA) activity on Solana hit a reported all-time high, with total RWA value reaching $3.62 billion, according to SolanaFloor. The account said more than $540 million of RWA value flowed onto the network over the past seven days, reflecting growing demand for tokenized representations of assets such as real estate and bonds.

Security risks remained in focus after suspicious transactions on the decentralized privacy protocol Hinkal led to the theft of approximately 800,000 USDC, according to monitoring by CertiK Alert. The firm said an externally owned account completed a ‘Proofless Deposit’ before executing multiple transactions that drained funds from the protocol’s contracts, adding to a steady drumbeat of exploits and irregular activities that continue to challenge DeFi security.

Taken together, the week’s developments highlight a market caught between tightening restrictions in some jurisdictions—such as India’s push to isolate regulated finance from crypto—and incremental normalization elsewhere through licensing, legislative clarity, and tokenization pilots. Whether the next phase is defined by bans, bounded integration, or full-scale adoption of ‘on-chain’ market structure will depend on how regulators reconcile financial stability concerns with innovation and competition in payments and capital markets.