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Regulatory Gridlock

Definition

Regulatory Gridlock in the digital asset space refers to a situation where the development and implementation of clear rules and guidelines are stalled due to disagreements among regulatory bodies or legislative inaction. This stagnation creates uncertainty for businesses and investors, hindering innovation and market growth within the cryptocurrency sector. It often results from conflicting jurisdictional claims, a lack of consensus on how to classify digital assets, or the rapid pace of technological change outpacing legislative processes. Such a state impedes the maturation of the industry and deters mainstream adoption.