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Federal Regulatory Authority

Definition

A federal regulatory authority is a government agency tasked with supervising and enforcing laws across a specific industry or sector at a national level. These entities establish rules, conduct oversight, and impose penalties to ensure compliance with federal statutes, consumer protection, and market stability. In the context of digital assets, various federal authorities, such as the SEC and CFTC, assert jurisdiction based on the classification of specific cryptocurrencies or related activities. Their actions significantly shape the legal and operational environment for blockchain companies and investors.