Foreword 3

Executive summary 4

Introduction 5

1 The changing role of digital assets 6

 1.1 Digital assets are shifting – from asset values to financial infrastructure 7

 1.2 Digital assets are reshaping monetary policy and financial sovereignty 8

 1.3 Regulation of digital assets has accelerated, but is fragmented in its approach 9

2 The challenges regulators face 11

 2.1 Regulation is becoming an exercise in financial system design 12

 2.2 Nine dimensions of an effective digital asset regulatory framework 12

3 The regulatory playbook 18

 3.1 Let market structure determine regulatory sequence 19

 3.2 Calibrate the regulatory approach 20

 3.3 Enable institutional market formation 21

 3.4 Build cross-border scale through regulatory trust 22

 3.5 Account for geopolitics in cross-border market design 23

4 Implications for market players 24

 4.1 Regulation reshapes existing businesses as new opportunities open 25

 4.2 Trusted financial roles persist as friction-based economics erode 26

 4.3 Shared infrastructure changes where firms can differentiate 27

5 Implementation priorities 28

 5.1 Translate regulatory requirements into common market standards 29

 5.2 Make digital asset rules work coherently with the wider financial regulatory system 29

 5.3 Build the supervisory capability and feedback loops to operate the framework 30

Conclusion 31

Appendix: Regulatory baseline 32

Contributors 33

Endnotes 36