a16z warns of loopholes in draft cryptocurrency rules, recommends adopting a "digital commodity" regulatory framework

PANews reported on August 1st that according to Cointelegraph, the well-known venture capital firm a16z called on US lawmakers to revise the draft crypto regulatory bill, warning that the proposed framework could have dangerous loopholes and undermine investor protection. a16z submitted an open letter to the US Senate Banking Committee, proposing amendments to the draft revision of the "21st Century Financial Innovation and Technology Act": 1. Opposing the current "affiliated assets" framework, believing that it conflicts with the securities law "Howey Test" and may weaken investor protection; recommending the adoption of clearer regulatory standards for "digital commodities." 2. Warning of loopholes in the primary/secondary market split regulation, project parties may exploit exemptions to sell assets to insiders at low prices and then resell them on the public market; proposing to use "degree of decentralization" as the regulatory dividing line, requiring the relinquishment of control in order to lift trading restrictions. 3. Requesting that blockchain-based technology activities, such as consensus algorithm operation and smart contract execution, should be exempted from being classified as securities.