Policy Framework

Definition ∞ A ‘Policy Framework’ establishes the guiding principles, rules, and objectives that govern a particular sector or activity. In the digital asset space, this refers to the set of laws, regulations, and guidelines that define how cryptocurrencies, blockchain technology, and related services operate. Such frameworks aim to balance innovation with risk mitigation, consumer protection, and financial stability.
Context ∞ The development of a comprehensive ‘Policy Framework’ for digital assets remains a significant undertaking for many jurisdictions. Debates are ongoing regarding the appropriate regulatory approach, with considerations for existing financial laws and the unique characteristics of digital assets. The structure and clarity of these frameworks will be pivotal in determining the future growth and mainstream acceptance of the digital asset industry.