Native Crypto Assets

Definition ∞ Native crypto assets are digital currencies or tokens that are intrinsic to a particular blockchain network. These assets typically serve as the primary medium of exchange, unit of account, or store of value within their respective blockchain ecosystems. They are often used to pay transaction fees, secure the network through staking or mining, and participate in network governance. Bitcoin and Ether are prominent examples, fundamental to the operation of their underlying protocols.
Context ∞ Native crypto assets are currently the subject of ongoing discussions regarding their classification and regulatory treatment across various jurisdictions. A key debate concerns whether they constitute securities, commodities, or a new asset class entirely, influencing how they are traded and managed. A critical future development involves increasing clarity in regulatory definitions, which will significantly impact their market perception and institutional adoption.