Product Intervention Power

Definition ∞ Product intervention power refers to the authority granted to financial regulators to restrict or ban financial products deemed harmful to consumers or market stability. In the digital asset space, this power allows regulators to intervene with specific cryptocurrency offerings, trading mechanisms, or investment vehicles. It serves as a protective measure against speculative risks and fraudulent schemes. This regulatory tool aims to safeguard market integrity and investor welfare.
Context ∞ The application of product intervention power in the digital asset market is a significant concern for innovators and market participants. Discussions often focus on the scope of such powers and the criteria used to determine harmful products. This regulatory approach highlights the ongoing tension between fostering innovation and ensuring consumer protection within a rapidly evolving financial sector.