Regulated Banking Framework

Definition ∞ A regulated banking framework constitutes the comprehensive set of laws, rules, and guidelines governing the operations of financial institutions within a specific jurisdiction. This framework establishes standards for capital adequacy, risk management, consumer protection, and anti-money laundering measures. Its purpose is to maintain financial stability, protect depositors, and ensure fair and transparent market conduct.
Context ∞ The interaction between traditional regulated banking frameworks and the emerging digital asset sector is a critical area of discussion in crypto news. Debates often focus on how existing regulations can be adapted or new ones created to accommodate cryptocurrencies, stablecoins, and blockchain-based services. The desire for regulatory clarity within this framework is a major factor influencing institutional adoption of digital assets.