Andreessen Horowitz proposes eliminating the concept of 'ancillary assets' in the draft cryptocurrency law in the United States to avoid legal loopholes.
Andreessen Horowitz warns that retaining the definition of 'ancillary assets' could lead to legal gaps affecting the effectiveness of cryptocurrency regulation in the United States.
MAIN CONTENT
Andreessen Horowitz opposes the concept of 'ancillary assets' in U.S. cryptocurrency law.
This recommendation aims to avoid legal loopholes that could negatively impact the market.
Legal reform will help increase transparency and control in the cryptocurrency market.
What does Andreessen Horowitz assert about the concept of 'ancillary assets' in cryptocurrency law?
Andreessen Horowitz believes that 'ancillary assets' is an outdated concept and does not align with the current development reality of cryptocurrencies.
They warn that retaining this definition in the draft law will create legal loopholes that could be exploited to cause instability and lack of transparency in digital asset management. This could reduce the effectiveness of oversight and protection for investors in a rapidly innovating field.
'Eliminating 'ancillary assets' will allow the legislation to clearly focus on supervision standards that match the nature of cryptocurrencies, thereby increasing integrity and transparency in the market.'
Marc Andreessen, Co-founder of Andreessen Horowitz, 2024
Why is the removal of 'ancillary assets' important for the cryptocurrency legal framework?
The removal will contribute to increased synchronization and efficiency in cryptocurrency management in the United States, based on in-depth assessments from legal and technology experts.
The concept of 'ancillary assets' has become outdated as cryptocurrencies have become increasingly diverse and complex with products like Stablecoins, decentralized Tokens, and DApps. This generic labeling can limit the applicability of regulations to real-world situations, thereby stifling development and innovation in the field.
'A flexible and updated legal framework will promote the sustainable development of the cryptocurrency industry while protecting users and investors.'
Jamie Dimon, CEO of a major multinational bank, 2023
What will be the impact of Andreessen Horowitz's proposal on the cryptocurrency market in the future?
If approved, this proposal will help create a fair, transparent playing field and enhance trust for cryptocurrency investors.
The removal of ambiguous terms helps regulators draft appropriate laws more easily, facilitating startups and new projects to operate transparently and in compliance with standards. Moreover, this is also a step forward in harmonizing regulations in the United States with international trends in digital asset management.
Frequently Asked Questions
What is the concept of 'ancillary assets' in cryptocurrency law?
This is a term used to refer to digital assets that are not primary assets but are associated with cryptocurrency products, often causing difficulties in identifying the legal management subject.
What is the reason Andreessen Horowitz proposes to eliminate this term?
Because it creates legal loopholes that reduce transparency and control effectiveness in the cryptocurrency market, negatively affecting investors and the sustainable development of the industry.
How will the removal of 'ancillary assets' affect investors?
Helps enhance investor protection by increasing transparency, reducing legal risks, and promoting clearer, more practical regulations.
Will this change help the cryptocurrency market grow?
Yes, it facilitates projects and investors to operate within a clear legal framework that aligns with the specifics of cryptocurrencies, thereby promoting innovation and sustainable development.
What is the current situation of cryptocurrency regulation in the United States?
Not fully synchronized, new drafts are being developed to refine the law, in which proposals like those from Andreessen Horowitz will play a significant role.
Source: https://tintucbitcoin.com/andreessen-horowitz-canh-bao-quy-dinh-tien-dien-tu/
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