The United States officially launches the "encryption sprint"! India ranks second in Bitcoin holdings globally, with policies likely to surpass the United States?

In the global competition landscape of digital assets, two seemingly disparate and enormous forces are simultaneously at play. On one side is the world's financial hegemon, the United States, whose regulatory agencies are launching a reform plan called "Crypto Sprint" with unprecedented determination and speed, aiming to establish clear federal-level rules for the chaotic market. On the other side is the "sleeping giant" India from the East, where a shocking set of data shows that despite facing harsh tax policies, the private accumulation of Bitcoin has quietly surged to the second largest in the world, second only to the United States.

These two significant pieces of news extend like two parallel lines on the world’s encryption map, yet they both point to a core issue: in this competition for the future dominance of finance, will the United States' top-down "policy-first" model solidify its hegemonic position, or will India’s bottom-up "public enthusiasm" have the chance to achieve an astonishing "leapfrog" if policy constraints are loosened?

America's "encryption sprint"

For a long time, the regulation of cryptocurrencies in the United States has been in a state of unclear authority between the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission), resembling a tug of war. However, this situation is being rapidly changed. Following the SEC's high-profile launch of the "Project Crypto" reform blueprint, the CFTC quickly followed suit, officially kicking off its "Crypto Sprint" plan on August 5, 2025.

The CFTC announced that it is considering allowing its registered derivatives exchanges (DCMs) to directly list and trade Bitcoin, Ether, and other "cryptocurrency spot contracts." This move seems to be just a technical rule adjustment, but its significance is profound.

According to current regulations, the CFTC's primary jurisdiction focuses on derivatives such as futures and options, while its regulatory power over the spot markets of assets considered "commodities," such as Bitcoin, is relatively limited, unless fraud or market manipulation is involved. If this plan can be implemented, it would mean that the United States will create a unified, transparent, and strictly regulated market structure for the spot and futures trading of cryptocurrencies at the federal level for the first time.

CFTC Acting Chair Caroline Pham demonstrated great courage and determination in her statement, pointing out that the CFTC does not intend to passively wait for Congress to complete legislation, but instead chooses to proactively deploy within its existing regulatory authority and accelerate its regulatory pace. She stated, "Under the strong leadership and vision of President Trump, the CFTC is moving forward at full speed to enable the trading of digital assets at the federal level immediately. We will invite all stakeholders to provide feedback to assist us in clarifying how to list cryptocurrency spot contracts on the DCM within our existing authority."

The "encryption sprint" plan is a concrete action initiated by the CFTC to implement the recommendations of the White House "Presidential Working Group on Digital Asset Markets" report, aiming to synchronize with the SEC's "encryption project" strategy to jointly create a globally leading digital financial market for the United States. To this end, the CFTC has simultaneously launched a public consultation process, inviting the market to provide feedback on issues such as contract design, risk control, and coordination with the SEC regulatory framework.

India's "retail whale"

At the same time that U.S. regulators are making bold moves in top-level design, data from the market reveals another force in the crypto world that cannot be ignored. Statistics show that the number of bitcoins held by the public in India has reached an astonishing approximately 1 million coins, with a total value of up to $115 billion to $120 billion, making it the second-largest holder of bitcoins in the world, surpassing traditional economies such as China and Europe. This data is shocking not only because of its massive quantity but also due to the holding structure and policy background behind it.

The United States, ranked first in the world, holds about 7.8 million Bitcoins, which includes assets from publicly traded companies like MicroStrategy, Bitcoin spot ETFs, and assets confiscated by government law enforcement agencies, showing a strong institutional presence. In contrast, India's million Bitcoins are almost entirely driven by a large number of retail investors. It is reported that India has over 119 million cryptocurrency users, with a high adoption rate globally, characterized by a wide base of long-term, small holders.

Even more incredible is that this wave of bottom-up adoption has occurred under extremely harsh policy resistance. Currently, the Indian government imposes a capital gains tax of up to 30% on profits from cryptocurrency and levies a 1% Tax Deducted at Source (TDS) on each transaction. These punitive tax policies have greatly suppressed high-frequency trading and short-term speculation, but they have failed to dampen the enthusiasm of the Indian public for viewing Bitcoin as a long-term store of value.

Experts analyze that India's young population structure, extremely high smartphone penetration rate, and continuously improving financial literacy are the main driving forces behind this trend. With the domestic currency (rupee) being relatively weak and inflationary pressures, more and more Indians are viewing Bitcoin as "digital gold" to counter macroeconomic risks.

Sumit Gupta, co-founder of the Indian cryptocurrency exchange Coin DCX, commented: "Even in the face of policy restrictions, Indian users are still purchasing and holding a large amount of Bitcoin. We just need more friendly policies, more reasonable taxes, and a clearer regulatory framework, and India is expected to become the leader in global Bitcoin holdings!"

The race between policy and the public

Observing the "crypto sprint" in the United States alongside India's "civilian whales" presents a tense global picture of the crypto competition. This is a typical contest between "top-level design" and "grassroots rise."

US Model: Policy-Driven, Institutional Precedence. The United States is attempting to leverage its strong financial regulatory capabilities to establish a clear, robust, and institution-friendly regulatory framework. The goal is to attract the vast capital of Wall Street and innovative companies from around the world into its regulated "fence," thereby consolidating its central position in the global financial system.

India Model: People-driven, immense potential. India presents another possibility with its large population base and strong grassroots demand, creating a huge and potential-filled market. This force is currently suppressed by policies, but it is like a dormant volcano, and once the policy environment improves, the energy it will unleash will be immeasurable.

The final outcome of this competition will depend on a key variable: the speed of the combination of policy and public enthusiasm. The advantage of the United States lies in the certainty of its policy implementation and its ability to attract global capital, but its public adoption rate and broad base may not be as strong as India's. India's advantage lies in its unparalleled user base and potential market size, but its greatest uncertainty lies precisely in its unpredictable policy outlook.

The world is holding its breath, watching the next steps of these two countries. The United States has launched its "encryption sprint," a grand strategy aimed at defining the future with rules and order. Meanwhile, India's million Bitcoin holders represent a powerful grassroots force that cannot be ignored. The leaders of the encryption world in the next decade may depend not only on who can establish the best rules, but also on who can most effectively combine national policy visions with the digital survival needs of billions of people. This race has just begun.