Definition ∞ Waiting for clarity describes a state of market or regulatory uncertainty where participants delay action until more definitive information becomes available. This pause often occurs when new regulations are anticipated, or when significant technological changes are pending. It reflects a cautious approach, as investors and businesses seek reduced risk before committing resources. This period can lead to reduced market activity.
Context ∞ In cryptocurrency news, “waiting for clarity” is a recurring phrase, especially concerning regulatory frameworks in various jurisdictions. Reports often discuss how this uncertainty can stifle innovation or deter institutional investment in digital assets. Market participants closely monitor legislative developments and policy announcements, as clear guidance can significantly influence market sentiment and adoption rates. This period of anticipation often precedes major shifts in market dynamics.
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