Self-Regulatory Body

Definition ∞ A Self-Regulatory Body is an organization that exercises regulatory authority over an industry or profession, typically operating under the oversight of a government agency. In the context of digital assets, such a body would establish and enforce rules of conduct, operational standards, and best practices for cryptocurrency exchanges, custodians, and other service providers. Its purpose is to promote market integrity, protect consumers, and ensure fair practices without direct governmental control over every detail. This structure aims for industry-led governance.
Context ∞ The state of Self-Regulatory Bodies in the digital asset sector is a subject of ongoing debate, particularly concerning their effectiveness and scope. A key discussion involves how these bodies can maintain independence and impartiality while possessing sufficient authority to enforce compliance across a diverse and rapidly evolving industry. Future developments may see these organizations playing a more significant role in setting industry standards, potentially reducing the need for prescriptive government intervention, provided they demonstrate consistent accountability and robust oversight.