Digital Commodity Regulation

Definition ∞ Digital commodity regulation establishes rules and oversight mechanisms specifically for digital assets classified as commodities. This framework typically addresses market manipulation, trading practices, and custodial standards for these assets. It aims to ensure fair and orderly markets while protecting participants.
Context ∞ The distinction between digital commodities and digital securities is a pivotal debate influencing regulatory approaches worldwide. Jurisdictions are developing or refining their laws to provide clearer guidance on which assets fall under commodity oversight. This clarity is essential for exchanges, custodians, and other service providers operating in the digital asset sector.