According to BlockBeats, venture capital firm Andreessen Horowitz (a16z) has called on U.S. lawmakers to revise a draft of a cryptocurrency regulation bill, warning that the framework may have significant flaws that could jeopardize investor protection mechanisms.
In a public letter to the U.S. Senate Banking Committee, a16z recommended that regulators address the gaps in the crypto legislation draft. This letter serves as an official response to the discussion draft released at the end of July. The draft is based on the '21st Century Financial Innovation and Technology Act' (CLARITY Act) and aims to gather industry feedback to advance the regulation of crypto assets.
A16z specifically highlighted issues with the definition of 'ancillary assets' within the draft. This term refers to tokens sold through investment contracts that do not grant the buyer equity, dividends, or governance rights. The letter stated, "The structure of 'ancillary assets' should not form the basis of legislation without significant modifications."