A16z calls for amending the draft cryptocurrency legislation and opposes using the existing definition of 'ancillary assets' as a regulatory basis

BlockBeats News: On August 1st, according to Cointelegraph, venture capital firm Andreessen Horowitz (a16z) called on US lawmakers to revise a draft cryptocurrency regulatory bill, warning that the framework may have serious loopholes that could jeopardize investor protection mechanisms. In an open letter to the US Senate Banking Committee, a16z suggested that regulatory agencies address the loopholes in the proposed cryptocurrency legislation. This letter is an official response to the discussion draft released at the end of July. This discussion draft is based on the 21st Century Financial Innovation and Technology Act (CLARITY Act) and aims to solicit industry opinions and promote regulatory legislation for encrypted assets. A16z specifically pointed out that there are issues with the definition of "ancillary assets" in the draft, which refers to tokens sold through investment contracts without granting the buyer equity, dividends, or governance rights. The structure of 'ancillary assets' should not become the legislative basis without significant modifications, "the letter stated