A “level playing field” refers to a market or regulatory environment where all participants compete under the same rules and conditions, without unfair advantages or disadvantages. This principle aims to promote fair competition, innovation, and consumer protection by ensuring consistent application of laws and access to resources. In the crypto domain, it pertains to the desire for regulatory parity between decentralized finance (DeFi) and traditional financial institutions, or for equitable market access and operational frameworks among various crypto trading venues.
Mechanism
The mechanism for establishing a level playing field typically involves legislative and regulatory actions that standardize compliance requirements, licensing procedures, and market conduct rules across different types of entities or technologies. It also requires enforcement mechanisms to deter practices that create undue advantages. For crypto markets, this might entail developing unified regulatory standards for digital asset exchanges, DeFi protocols, and institutional custody solutions, ensuring all actors operate under comparable obligations regarding investor protection and systemic stability.
Methodology
The strategic methodology involves coordinated policy development, cross-jurisdictional cooperation, and stakeholder engagement to address regulatory arbitrage and technological disparities. The goal is to create a regulatory environment that supports both innovation in crypto and stability in the broader financial system. This approach aims to prevent unfair competition and systemic risks that could arise from regulatory gaps or preferential treatment, ensuring sustainable growth for institutional crypto investing and smart trading.
The tick size regime erodes the primary price-based competitive advantage of Systematic Internalisers, forcing a strategic shift toward execution certainty and non-price benefits while altering market-wide liquidity dynamics.
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