a16z Calls for Amendment to Crypto Legislation Draft, Opposing the Use of the Existing 'Derivatives Asset' Definition as Regulatory Foundation

BlockBeats News, August 1st, according to a report by Cointelegraph, venture capital firm Andreessen Horowitz (a16z) has urged US lawmakers to amend a draft cryptocurrency regulation bill, warning that the framework may have significant loopholes that could jeopardize investor protection mechanisms.

In an open letter to the US Senate Banking Committee, a16z suggested that regulators address the gaps in the cryptocurrency legislation draft. This letter is a formal response to a discussion draft released at the end of July. The discussion draft was based on the "21st Century Financial Innovation and Technology Act" (CLARITY Act) and aimed to solicit industry feedback to advance cryptocurrency regulatory legislation.

a16z specifically pointed out issues with the draft's definition of "covered assets," a term referring to tokens sold through investment contracts that do not give buyers equity, dividends, or governance rights. The letter stated: "The 'covered assets' construct should not be the basis for legislation without significant modification."