Innovation Exemption Framework

Definition ∞ An innovation exemption framework is a regulatory approach providing temporary or conditional relief from certain existing rules for novel technologies or business models. This framework aims to foster experimentation and growth in emerging sectors, such as digital assets, without immediately subjecting them to unsuitable regulations. It permits controlled testing and learning within a regulated environment.
Context ∞ News often reports on various jurisdictions proposing or implementing innovation exemption frameworks to attract and support blockchain and digital asset companies. These frameworks are frequently discussed in the context of regulatory sandboxes or test-and-learn initiatives, aiming to balance consumer protection with technological advancement. The success or failure of such programs directly influences policy debates and the global competitive landscape for crypto ventures.