Temporary Holding Limits

Definition ∞ Temporary holding limits are restrictions placed on the amount of a particular asset that can be held for a limited duration. These limits are often imposed by regulators or platforms to manage risk, prevent market manipulation, or control liquidity during periods of high volatility. They serve as a protective measure. Such limits aim to stabilize market conditions.
Context ∞ Temporary holding limits are frequently discussed in relation to stablecoins and other digital assets, particularly during periods of market stress or when new regulatory frameworks are being implemented. These limits can impact market behavior and the accessibility of certain digital assets. Their implementation often signals regulatory caution.