Definition ∞ A grandfathering clause is a provision in a new law or regulation that exempts certain existing situations or entities from its application. This clause allows those pre-existing elements to continue operating under older rules, even after the new rules take effect. It typically aims to prevent undue hardship or disruption for entities that were compliant under previous legal frameworks. Such clauses are common during significant regulatory transitions.
Context ∞ In the rapidly evolving digital asset regulatory landscape, grandfathering clauses are frequently discussed concerning newly introduced licensing requirements or operational standards. Entities operating before a specific date might receive exemptions or extended transition periods. A key debate involves determining fair and practical criteria for applying such clauses to avoid creating competitive disadvantages or regulatory loopholes.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
