Regulatory Reprieve

Definition ∞ Regulatory reprieve refers to a temporary suspension or relaxation of existing regulations or enforcement actions by a governing authority. This measure provides relief to entities, allowing them time to adapt to new rules or recover from challenging circumstances. It can offer a period of reduced compliance burden or deferred punitive action. Such reprieves are often granted in response to evolving market conditions or industry-specific needs.
Context ∞ In the cryptocurrency sector, regulatory reprieve is often sought by startups and established firms navigating uncertain legal frameworks. News reports frequently highlight instances where regulators offer grace periods for compliance with new digital asset laws. These reprieves can significantly impact market stability and innovation, providing breathing room for businesses to adjust without immediate severe penalties.