Regulatory Taxonomy Framework

Definition ∞ A regulatory taxonomy framework is a structured system for classifying digital assets and related activities according to existing or newly proposed legal definitions. This framework aims to provide clarity on which regulations apply to different types of tokens, platforms, and services. It helps regulators, businesses, and investors understand the legal status and compliance obligations associated with various digital assets. Establishing a consistent taxonomy is crucial for effective oversight.
Context ∞ The development of a clear regulatory taxonomy framework for digital assets is a key policy objective for many governments, as reflected in ongoing legislative discussions and agency guidance. News reports frequently cover efforts by bodies like the SEC and CFTC to classify tokens as securities, commodities, or other financial instruments. A well-defined framework would significantly reduce legal uncertainty and foster responsible innovation.