Regulatory Market Structure

Definition ∞ Regulatory market structure pertains to the organizational framework and rules governing how financial markets operate, including the types of entities involved, their roles, and the mechanisms for trading, clearing, and settlement. For digital assets, this involves establishing guidelines for exchanges, brokers, custodians, and other market participants. It seeks to ensure fair and orderly markets, investor protection, and systemic stability. The structure dictates how digital assets are issued, traded, and managed under legal oversight.
Context ∞ The development of a clear regulatory market structure for digital assets is a pressing concern for policymakers worldwide, aiming to integrate these assets into the broader financial system. Key discussions focus on adapting existing regulations, such as those for securities and commodities, to the unique characteristics of blockchain technology. Future efforts will likely involve creating tailored regulatory frameworks that address the specific risks and opportunities presented by decentralized markets.