Paradigm, Multicoin, Galaxy and other crypto institutions jointly support the Senate's crypto legislation draft

PANews reported on August 8th that Dan Robinson, General Partner and Head of Research at Paradigm, announced on the X platform that this week his team, along with Multicoin Capital, Chainlink, Electric Capital, Galaxy, Ribbit Capital, and Tribe Capital, sent a letter expressing their views on the draft cryptocurrency market structure legislation released by the Senate Banking Committee. On the key issue of token securities regulation, the Senate draft differs from the House-passed CLARITY Act. Paradigm believes the Senate's "ancillary asset" proposal is more beneficial to the crypto industry. While both bills offer advantages over the difficult-to-apply "Howey Test" system, which creates perverse incentives, the Senate draft is simpler and avoids fitting decentralized tokens and protocols into a rigid framework. It also uses an exclusionary clause to prevent abuse, excluding assets with legal rights to specific financial benefits from being considered ancillary assets.