Tailored Disclosure Rules

Definition ∞ Tailored Disclosure Rules are specific regulatory requirements for information transparency that are customized to the unique characteristics and risks of particular assets or market participants. These rules deviate from standardized disclosure mandates to provide relevant and proportionate information without imposing undue burdens. In the digital asset sector, tailored disclosures could address the technical complexities and novel economic models of crypto tokens. They aim to inform investors effectively.
Context ∞ The call for tailored disclosure rules for digital assets reflects the industry’s argument that existing securities disclosure requirements are ill-suited for blockchain-native projects. Proponents suggest that specific disclosures regarding tokenomics, network decentralization, and smart contract audits would be more relevant to crypto investors. Regulators are considering how to adapt disclosure frameworks to balance investor protection with the unique attributes of digital assets.