A tailored disclosure system is a regulatory framework that mandates the provision of information to investors or consumers, with requirements specifically adjusted to the characteristics of the asset or market. This system aims to provide relevant transparency without imposing overly burdensome or inappropriate obligations. It balances informational needs with practical implementation.
Context
For digital assets, the concept of a tailored disclosure system is gaining traction as regulators recognize that traditional securities disclosure requirements may not fit all crypto assets. Proponents argue for disclosures that account for the unique technical and economic properties of tokens and decentralized protocols. Such a system could provide essential information to market participants while fostering innovation in the digital asset sector.
The Act mandates a critical architectural shift, establishing CFTC as the primary spot market regulator, fundamentally altering existing compliance frameworks.
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