Definition ∞ Dual agency regulation refers to a governance structure where two or more distinct governmental bodies or regulatory authorities possess overlapping jurisdiction over specific aspects of the digital asset market. This situation often arises from the hybrid characteristics of certain digital assets, which may fall under multiple existing regulatory definitions. It creates a complex compliance landscape for market participants. This framework requires coordination among supervising entities.
Context ∞ The ongoing debate regarding the classification of digital assets frequently results in scenarios of dual agency regulation, as reported in financial news. For instance, a single digital asset might be subject to oversight by both securities and commodities regulators. These arrangements often lead to discussions concerning regulatory clarity, potential jurisdictional conflicts, and the compliance burden placed upon cryptocurrency businesses. The effectiveness of inter-agency cooperation remains a significant concern.
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