Technology Neutrality

Definition ∞ Technology neutrality means rules should apply based on what something does, not on the specific technology it uses. This regulatory principle suggests that legal and policy frameworks should focus on the function, purpose, or risks of an activity rather than discriminating based on the underlying technology employed. In the context of digital assets, it advocates for regulating cryptocurrencies and blockchain applications based on their economic characteristics and utility, such as whether they function as a security, commodity, or payment instrument. This approach aims to foster innovation by avoiding premature or overly prescriptive technology-specific rules.
Context ∞ Technology neutrality is a central theme in global discussions surrounding digital asset regulation, frequently reported in news concerning legislative proposals and policy debates. Proponents argue it prevents stifling innovation and ensures a level playing field between traditional and blockchain-based financial products. Critics sometimes suggest that ignoring technological specifics can overlook unique risks inherent to novel systems.