Technology Neutral Regulation

Definition ∞ Technology neutral regulation is a regulatory approach that applies legal rules based on the function or purpose of an activity, rather than the specific technology used to conduct it. This framework aims to ensure that similar risks or outcomes receive similar regulatory treatment, regardless of whether they arise from traditional or novel digital technologies. It promotes fairness and avoids stifling innovation by not favoring or disfavoring particular technological solutions. This approach is highly relevant for digital assets.
Context ∞ The concept of technology neutral regulation is a central discussion point in global efforts to regulate digital assets, seeking to apply existing laws appropriately. The current situation involves various jurisdictions attempting to adapt their regulatory frameworks to blockchain and cryptocurrency without creating technology-specific barriers. A critical future development will be the widespread adoption of this principle, leading to more consistent and adaptable regulatory environments for the evolving digital asset sector.