Policy Negotiation

Definition ∞ Policy negotiation is the interactive process involving various stakeholders, such as industry participants, regulators, and legislators, to establish acceptable rules and frameworks. In the digital asset sector, this refers to discussions and compromises aimed at shaping future regulations or protocol governance structures. It seeks to reconcile differing interests and objectives.
Context ∞ Policy negotiation is currently underway across numerous jurisdictions as governments work to regulate digital assets without stifling innovation. Industry groups are actively engaging with policymakers to advocate for balanced and technologically informed rules. The outcomes of these negotiations will significantly determine the operational parameters and growth trajectory of the digital asset economy.