Federal Regulatory Perimeter

Definition ∞ The federal regulatory perimeter defines the scope and boundaries of oversight exercised by national governmental bodies over specific activities or entities within the digital asset space. This perimeter determines which digital assets, services, or participants fall under the jurisdiction of federal agencies. Its establishment clarifies legal obligations and permissible operations for market participants. The perimeter helps delineate responsibilities among various regulatory authorities.
Context ∞ The current discussion on the federal regulatory perimeter centers on its ongoing definition and expansion to accommodate new digital asset innovations. A significant debate involves classifying various digital assets as securities, commodities, or other financial instruments. Future developments will likely involve legislative actions and agency rule-making to provide greater clarity and consistency in oversight.