# GRU Regulatory Framework

## Overview

This document provides detailed information about the GRU regulatory classifications and compliance requirements as established in the GRU Institutional Whitepaper.

## Regulatory Classifications

The GRU system uses a tiered regulatory classification system to determine access levels and eligibility:

### SR-1: Global Reserve Tier

- **Access Level**: Global reserve
- **Eligible Entities**: Supranational councils, DBIS
- **Description**: Highest tier for global reserve operations
- **Requirements**:
  - Supranational council status
  - Reserve adequacy verification
  - Legal recognition of DBIS oversight
  - ILIE identity verification

### SR-2: Stabilization Tier

- **Access Level**: Stabilization
- **Eligible Entities**: Regional unions
- **Description**: Regional currency stabilization operations
- **Requirements**:
  - Regional union status
  - Reserve adequacy verification
  - Legal recognition of DBIS oversight
  - ILIE identity verification

### SR-3: Commodity & Crisis Reserves

- **Access Level**: Commodity reserves
- **Eligible Entities**: Nations/SCBs (Sovereign Central Banks)
- **Description**: Commodity-backed reserves and crisis management
- **Requirements**:
  - Sovereign central bank status
  - Reserve adequacy verification
  - Legal recognition of DBIS oversight
  - ILIE identity verification

### M0: Operational Liquidity

- **Access Level**: Operational liquidity
- **Eligible Entities**: Institutions
- **Description**: Institutional operational liquidity management
- **Requirements**:
  - Institutional status
  - Legal recognition of DBIS oversight
  - ILIE identity verification

### M1: Market Instruments

- **Access Level**: Market instruments
- **Eligible Entities**: Commercial entities
- **Description**: Commercial market instruments and operations
- **Requirements**:
  - Commercial entity status
  - Legal recognition of DBIS oversight
  - ILIE identity verification

## Eligibility Criteria

All entities seeking GRU access must meet the following criteria:

1. **Sovereign or Recognized Supranational Entity**: Must be a recognized sovereign entity or supranational organization
2. **Reserve Adequacy**: Must demonstrate adequate reserve holdings (for SR-1, SR-2, SR-3)
3. **Legal Recognition**: Must legally recognize DBIS oversight authority
4. **Identity Verification**: Must complete ILIE (Infinite-Layer Identity Engine) verification

## Compliance Requirements

### Legal Frameworks

- **SMIA (Sovereign Monetary Instruments Act)**: Compliance required for all SR-tier issuances
- **DRGC (DBIS Reserve Governance Charter)**: All GRU operations subject to DBIS oversight
- **IMCP (International Monetary Compliance Protocols)**: Required for cross-border operations

### International Standards

- **ISO 4217**: Currency code compliance
- **ISO 6166**: ISIN issuance standards
- **ICC UCP 600**: Commodity documentation standards
- **FATF**: AML/CTF compliance standards

## Regulatory Classification Process

1. **Application**: Entity submits classification request
2. **Eligibility Review**: System verifies eligibility criteria
3. **Classification Assignment**: Appropriate regulatory class assigned
4. **Ongoing Monitoring**: Regular eligibility reviews and compliance checks

## Related Documentation

- [GRU Institutional Whitepaper](./gru-institutional-whitepaper.md)
- [GRU Issuance Governance](./gru-issuance-governance.md)

