Technology-Neutral Rules

Definition ∞ Technology-neutral rules are regulatory principles designed to apply consistently across different technologies, focusing on the function or economic substance of an activity rather than the specific technological means used. In digital assets, this means regulations would treat a decentralized financial service similarly to a traditional one if they perform the same function. The aim is to avoid stifling innovation by not favoring or disfavoring particular technologies. Such rules promote fair competition.
Context ∞ The discussion surrounding technology-neutral rules is a prominent theme in regulatory discourse for digital assets, advocating for consistency across financial sectors. A key debate involves the practical challenges of applying such principles to rapidly evolving and fundamentally distinct blockchain technologies. A critical future development to watch for is the global adoption of more technology-neutral approaches, which could simplify compliance and foster a more level playing field for innovation.