Good faith compliance refers to an entity’s sincere and honest effort to adhere to applicable laws, regulations, and ethical standards. It implies a genuine commitment to fulfilling legal obligations, even when specific rules are ambiguous or evolving. This principle contrasts with mere superficial adherence or attempts to exploit legal loopholes. Demonstrating good faith compliance can influence regulatory outcomes and public trust.
Context
In the rapidly developing digital asset sector, good faith compliance is a significant topic as regulatory frameworks are still taking shape. News reports often detail how digital asset firms navigate legal uncertainties by proactively seeking regulatory guidance or implementing robust internal controls. The current discussion centers on encouraging genuine adherence to regulatory principles while avoiding punitive measures against entities making sincere efforts to operate lawfully within an evolving legal landscape.
The CFTC's new policy elevates the scienter standard, strategically mitigating registration risk for firms that demonstrate good-faith compliance efforts.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
