Definition ∞ Principles-Based Oversight is a regulatory approach that establishes broad, overarching standards and objectives for market conduct rather than highly detailed, prescriptive rules. This framework provides flexibility while aiming to achieve specific regulatory outcomes. It emphasizes outcomes over strict adherence to rigid guidelines.
Context ∞ This oversight model is being considered or adopted by certain jurisdictions for regulating digital asset markets, seeking to balance innovation with systemic risk mitigation and consumer protection. It allows regulators to adapt to rapidly evolving technologies without constant rule revisions. The debate centers on its effectiveness in ensuring market integrity.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
