Definition ∞ Federal state coordination refers to the collaborative efforts and alignment of policies between national and sub-national governmental bodies. In the context of digital assets, this involves harmonizing regulatory approaches to prevent fragmentation and ensure consistent oversight across different administrative levels. Effective coordination is crucial for creating a unified and predictable legal environment.
Context ∞ Federal state coordination is a significant challenge in regulating digital assets, particularly in countries with decentralized legal systems. Discrepancies between federal and state rules can create regulatory arbitrage opportunities or hinder innovation. Efforts are underway to establish clearer lines of authority and cooperative frameworks to ensure a coherent national strategy for digital asset governance.
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