Definition ∞ A safe harbor definition provides specific criteria or conditions under which certain activities or entities are exempt from particular legal or regulatory liabilities. This legal provision offers clarity and protection to participants operating within defined boundaries. It aims to reduce regulatory uncertainty and foster innovation in new markets.
Context ∞ In the context of digital assets, discussions around a safe harbor definition often relate to distinguishing between securities and non-securities for regulatory purposes. Proponents advocate for clear guidelines to allow blockchain projects to develop without immediate enforcement actions, particularly in early stages. Regulatory bodies are evaluating various approaches to balance investor protection with technological advancement.
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