Andreessen Horowitz (a16z) calls on US lawmakers to eliminate the ‘ancillary asset’ definition in the draft crypto regulation, warning that it may weaken investor protections. They emphasize the need for a clearly defined ‘digital commodity’ framework.
The firm argues that existing definitions must align with the Howey test to ensure consistency in regulations. A16z stresses that the Howey test is critical to U.S. Securities law and should remain unchanged.
A16z suggests that regulations should ensure decentralization in projects to close loopholes that allow insider sales. They recommend that technology functions vital for decentralized operations be exempt from securities laws to promote innovation.
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