Investment Adviser Rule

Definition ∞ The Investment Adviser Rule refers to regulations governing individuals or firms that provide investment advice for compensation. These rules typically require registration with a regulatory body and adherence to fiduciary duties, meaning they must act in their clients’ best interests. They aim to protect investors from conflicts of interest and unsuitable recommendations.
Context ∞ The applicability of the Investment Adviser Rule to entities offering advice on digital assets is a significant area of regulatory discussion. Determining whether certain crypto services constitute investment advice and thus fall under existing securities laws remains a complex legal challenge. Regulators are assessing how to apply or adapt these rules to the unique characteristics of digital asset markets to ensure investor protection.