Digital Commodity Dealer

Definition ∞ A Digital Commodity Dealer is an entity that buys and sells digital assets classified as commodities, such as Bitcoin or Ether, for its own account or on behalf of clients. These dealers operate in spot markets and may facilitate over-the-counter transactions. Regulatory proposals often seek to define and supervise these market participants to ensure fair and orderly trading.
Context ∞ The regulation of digital commodity dealers is a critical discussion point in legislative efforts to establish clear oversight for the crypto market. News frequently reports on proposed rules that would clarify registration requirements, capital adequacy standards, and other operational guidelines for these entities, impacting market structure and investor protection.