Trade Haven Hub - Investing and Stock News
  • Investment Tips
  • Trade Tips
  • Crypto News
  • Economy News
  • Stock Market
  • Investment Tips
  • Trade Tips
  • Crypto News
  • Economy News
  • Stock Market
No Result
View All Result
Trade Haven Hub - Investing and Stock News
No Result
View All Result
Home Crypto News

VC Firm Andreessen Horowitz Flags Gaps in Draft Crypto Bill

by
August 1, 2025
in Crypto News
0
VC Firm Andreessen Horowitz Flags Gaps in Draft Crypto Bill
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Andreessen Horowitz (a16z) is urging U.S. lawmakers to revisit and revise a draft crypto regulation bill, warning that the current proposal could open legal loopholes and weaken investor protections.

Key Takeaways:

a16z warns the draft crypto bill creates legal loopholes around ancillary assets. The firm says redefining securities could weaken protections and contradict the Howey test. It urges lawmakers to tie token exemptions to clear decentralization milestones.

The venture capital firm raised its concerns in a formal letter sent Thursday to the Senate Banking Committee.

The letter responds to a recent discussion draft aimed at shaping the 21st Century Financial Innovation and Technology Act, also known as the CLARITY Act.

a16z Warns Draft Crypto Bill Missteps on Ancillary Assets

While the draft seeks to clarify the regulatory landscape for digital assets, a16z argues that the framework as written poses legal and structural risks, especially around the treatment of “ancillary assets.”

Ancillary assets refer to digital tokens sold alongside investment contracts, typically without providing buyers with equity, dividends, or governance rights.

a16z said using this category as the foundation for new legislation “without significant modifications” is problematic.

The firm believes this structure contradicts the Howey test, which is the longstanding legal standard for determining whether an asset qualifies as a security under U.S. law.

“Rewriting Howey,” the letter stated, “would depart from settled law and endanger investor protections.”

Instead, a16z supports the CLARITY Act’s narrower definition of “digital commodities” and recommends codifying a control-based decentralization model.

This would assess whether any party retains unilateral control, operational, financial, or governance, over a blockchain system.

According to the firm, decentralization should mark the point at which an asset transitions from a security to a commodity.

Crypto provides a counterbalance to AI systems, decentralizing something that tends to centralize.

So what are builders actually working on? And what challenges still need to be solved?

The @a16zcrypto team shares 11 use cases at the intersection of crypto x AI — from universal… pic.twitter.com/8o7oOGcNN9

— a16z (@a16z) June 11, 2025

The firm also criticized the bill’s proposed distinction between primary and secondary markets.

It argued that allowing commodity regulations to govern secondary trading could enable issuers to offload tokens to insiders under exemptions, who could then resell them publicly without regulatory oversight.

a16z proposed that decentralization milestones be required before such exemptions apply, ensuring that investor protections remain intact.

a16z Urges Transfer Limits Until Full Decentralization

To close this gap, the letter recommends imposing transfer restrictions that phase out only after a project achieves genuine decentralization.

“Once control is relinquished,” the firm wrote, “those restrictions should fall away, as the asset’s trust dependencies now resemble those of a commodity.”

The letter also addressed the SEC’s past application of the Howey test, especially its emphasis on the “efforts of others” aspect.

a16z claims this approach has discouraged transparency and hindered innovation by pushing developers to distance themselves from projects to avoid legal risk.

Last month, the GENIUS Act, or the Guiding and Establishing National Innovation for US Stablecoins Act, passed the House with bipartisan backing, including votes from over 100 Democrats.

The post VC Firm Andreessen Horowitz Flags Gaps in Draft Crypto Bill appeared first on Cryptonews.

Previous Post

Bitcoin Mining Power Use Jumps 112% to 33 Gigawatts as Network Transactions Hit 2-Year Low: GoMining

Next Post

Harvest Gold Announces Closing of Non-Brokered Private Placement with Crescat Capital as Lead Investor

Next Post
Harvest Gold Announces Closing of Non-Brokered Private Placement with Crescat Capital as Lead Investor

Harvest Gold Announces Closing of Non-Brokered Private Placement with Crescat Capital as Lead Investor

  • Trending
  • Comments
  • Latest
Buy Bitcoin Under $100K Before The Next Bull Run

Buy Bitcoin Under $100K Before The Next Bull Run

April 22, 2025
Quantum Computing: its Evolution and its Potential Future

Quantum Computing: its Evolution and its Potential Future

March 20, 2025
Stock Market News UK Update: FTSE 100 & 250 Rise

Stock Market News UK Update: FTSE 100 & 250 Rise

March 20, 2025
Air Direct Capture – Reducing CO2 from the Atmosphere

Air Direct Capture – Reducing CO2 from the Atmosphere

March 20, 2025
Solana Price Prediction: $3B in Fresh Demand + Golden Cross Setup – SOL Will Go Higher Than Most Expect

Solana Price Prediction: $3B in Fresh Demand + Golden Cross Setup – SOL Will Go Higher Than Most Expect

0
Quantum Computing: its Evolution and its Potential Future

Quantum Computing: its Evolution and its Potential Future

0
Quantum Computing: its Evolution and its Potential Future

Quantum Computing: its Evolution and its Potential Future

0
Air Direct Capture – Reducing CO2 from the Atmosphere

Air Direct Capture – Reducing CO2 from the Atmosphere

0
Solana Price Prediction: $3B in Fresh Demand + Golden Cross Setup – SOL Will Go Higher Than Most Expect

Solana Price Prediction: $3B in Fresh Demand + Golden Cross Setup – SOL Will Go Higher Than Most Expect

August 29, 2025
Bitcoin Price Prediction: Eric Trump Targets $1M as Amdax Eyes 1% Supply

Bitcoin Price Prediction: Eric Trump Targets $1M as Amdax Eyes 1% Supply

August 29, 2025
Editor’s Picks: Gold Price Breaks US$3,400, Silver Added to Draft US Critical Minerals List

Editor’s Picks: Gold Price Breaks US$3,400, Silver Added to Draft US Critical Minerals List

August 29, 2025
BlackRock Offloads Millions in BTC After Weekly Buys – Market ‘Manipulation’ or Routine Rebalance?

BlackRock Offloads Millions in BTC After Weekly Buys – Market ‘Manipulation’ or Routine Rebalance?

August 29, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent News

    Solana Price Prediction: $3B in Fresh Demand + Golden Cross Setup – SOL Will Go Higher Than Most Expect

    Solana Price Prediction: $3B in Fresh Demand + Golden Cross Setup – SOL Will Go Higher Than Most Expect

    August 29, 2025
    Bitcoin Price Prediction: Eric Trump Targets $1M as Amdax Eyes 1% Supply

    Bitcoin Price Prediction: Eric Trump Targets $1M as Amdax Eyes 1% Supply

    August 29, 2025
    Editor’s Picks: Gold Price Breaks US$3,400, Silver Added to Draft US Critical Minerals List

    Editor’s Picks: Gold Price Breaks US$3,400, Silver Added to Draft US Critical Minerals List

    August 29, 2025
    BlackRock Offloads Millions in BTC After Weekly Buys – Market ‘Manipulation’ or Routine Rebalance?

    BlackRock Offloads Millions in BTC After Weekly Buys – Market ‘Manipulation’ or Routine Rebalance?

    August 29, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 tradehavenhub.com | All Rights Reserved

    No Result
    View All Result
    • Investment Tips
    • Trade Tips
    • Crypto News
    • Economy News
    • Stock Market

    Copyright © 2025 tradehavenhub.com | All Rights Reserved