a16z dey call for digital commodity model for crypto regulation

Venture firm Andreessen Horowitz (a16z) don urge US Senate Banking Committee to sabi make dem revise their draft crypto regulation wey dem call 21st Century Financial Innovation and Technology Act. Dem warn say the proposed ancillary-asset framework dey conflict with Howey test and e fit open loopholes wey go fit weaken investor protections. The current draft wey base on CLARITY Act define tokens wey dem sell through investment contracts without equity or governance rights as “subsidiary assets,” and a16z talk say e fit allow issuers sell tokens to insiders under securities exemptions, then dem fit trade them publicly as commodities. To handle these risks, a16z recommend make dem adopt clear “digital commodity” regulatory category wey go align with existing commodity laws and make dem keep the core principles of Howey test. The firm also suggest to close primary versus secondary market loopholes by using project decentralization as the threshold to lift transfer restrictions. Lastly, a16z call for explicit law wey go exclude core blockchain infrastructure activities like mining, staking, consensus-algorithm operation, and smart-contract execution from being classified as securities. These changes go help make crypto regulation clear, reduce compliance risks for projects and investors, strengthen investor safeguards, and promote innovation for the digital-asset sector.