Regulatory Normalization

Definition ∞ Regulatory normalization is the process by which digital assets and blockchain technology become integrated into existing financial regulatory frameworks, or when new, consistent regulations are established globally. This aims to create a clear and predictable legal environment for the industry. Normalization reduces uncertainty and fosters mainstream adoption. It signifies a move towards maturity for the sector.
Context ∞ Regulatory normalization is a continuous and evolving process globally, with various jurisdictions proposing and implementing new laws for digital assets. Debates often focus on whether to adapt existing financial regulations or create entirely new frameworks specific to crypto. Achieving consistent international standards for digital assets remains a significant challenge and a key objective for industry stability.