Definition ∞ Financial product law is the legal framework governing the creation, distribution, and sale of financial instruments and services, including those involving digital assets. This law sets standards for disclosure, consumer protection, market conduct, and licensing requirements for providers. It ensures fairness and transparency in financial markets.
Context ∞ The application of financial product law to digital assets is a critical area of development, as authorities determine which cryptocurrencies or blockchain-based offerings qualify as regulated products. This legal interpretation directly impacts how digital asset projects can operate, raise capital, and interact with retail and institutional investors. Clarity is still sought.