SEC Commissioner Hester Peirce's "Panda" speech in Singapore this past July notes a critical issue that must be resolved to accomplish seamless worldwide digital asset adoption: 

"(T)he precise nature—currency, commodity, security, derivative—of many of the assets at issue is difficult to determine,” he said. “Accordingly, academics and regulators are thinking through cross-border questions in the digital asset context."

Broad definitions to frame understanding of the "precise nature" of any asset digital or traditional) are required for market participants and regulators to seamlessly work within, or across, borders to design, build, regulate and comply.   

Jurisdictional rules vary. However, when "commodity, currency, equity" are cited in a worldwide financial context, market participants and regulators generally understand broad meanings, frameworks or rule-sets to apply or, at minimum, where to start. 

There Is A Solution 

The Digital Asset Sector Hierarch or DASH taxonomy offers broad categorical definitions and an integrative approach defining four digital asset classes—in context to traditional asset classes—by applying root attributes without outliers.

Commodity, Currency, Equity, (Bearer) Certificate.

Four Digital Asset Classes:

(see for more information and proposed definitions)

Digital Commodity

Digital Currency

Digital Certificate of Value

Digital Equity

My book, "Defining the Digital Economy: The Structure of the Digital Economy in Focus,” offers insights from the study of more than 2,500 exchange-traded digital assets over 14 months.

A new approach to promoting Digital Asset adoption is available through understanding and by "Defining the Digital Economy."

Lori Jo Underhill is a digital economy analyst, or “Digital Economist.” She is a principal at LJU and Associates Consulting. Underhill holds a B.S. in business administration from Arizona State University and a J.D. from Southwestern Law School in Los Angeles.