Definition ∞ Enforcement risk shift refers to a change in the party primarily responsible for managing or bearing the consequences of regulatory enforcement actions. This often occurs when new regulations or policy interpretations reallocate accountability within an industry. It alters which entities face the greatest legal scrutiny or potential penalties for non-compliance.
Context ∞ In the digital asset sector, an enforcement risk shift might occur as regulators move from targeting individual bad actors to holding platforms or decentralized autonomous organizations (DAOs) accountable. This evolution in regulatory strategy can significantly impact operational compliance requirements and legal liabilities for participants in the crypto economy. Understanding this shift is vital for assessing future regulatory pressures.