Definition ∞ A legal wrapper is a conventional legal entity or contractual agreement that formally surrounds or governs a digital asset, protocol, or decentralized autonomous organization. This structure provides a recognized legal framework, often for regulatory compliance, liability limitation, or to grant enforceable rights to token holders. It bridges the gap between the typically permissionless nature of blockchain and established legal systems. The wrapper clarifies legal responsibilities.
Context ∞ The use of legal wrappers for decentralized autonomous organizations and tokenized assets is a prominent topic in regulatory discussions, particularly concerning investor protection and accountability. Debates focus on determining the most appropriate legal structures to provide clarity without compromising decentralization principles. Future developments will likely involve the refinement of standardized legal wrappers that accommodate the unique characteristics of digital assets while satisfying jurisdictional requirements globally.
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