Asset Class Permissibility

Definition ∞ This refers to the regulatory and institutional acceptance of specific asset types for investment or operational inclusion. It outlines the boundaries within which financial entities can hold, trade, or otherwise interact with various asset classes. The concept addresses legal frameworks, internal policies, and risk assessments determining which assets are deemed suitable for particular portfolios or financial activities.
Context ∞ The current discourse surrounding asset class permissibility in digital assets focuses on establishing clear regulatory guidelines for cryptocurrencies and tokenized assets. Industry participants and regulators are actively working to classify these new asset types, thereby influencing their integration into mainstream financial systems and defining the scope of their legitimate use.