Definition ∞ Federalism in finance pertains to the division of regulatory authority and financial oversight responsibilities between national and sub-national governmental levels. In the context of digital assets, this refers to how different states or regions within a country may implement varying regulations for cryptocurrencies and blockchain technology. This creates a complex regulatory landscape with diverse compliance requirements.
Context ∞ The interplay of federal and state regulatory approaches to digital assets is a constant source of discussion in crypto news, particularly in jurisdictions like the United States. This regulatory fragmentation can create challenges for businesses operating across multiple states, impacting licensing and operational compliance. Efforts to harmonize these varied legal frameworks are a key area of policy debate.
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