a16z points out that there are loopholes in the definition of "ancillary assets" in the draft of the Crypto Assets regulatory bill.

[a16z points out that there are loopholes in the definition of "ancillary assets" in the cryptocurrency regulatory bill] Venture capital firm Andreessen Horowitz (a16z) sent an open letter to the U.S. Senate Banking Committee, proposing amendments to the latest cryptocurrency regulatory bill draft. The firm pointed out that the definition of "ancillary assets" in the bill has loopholes that could harm investor rights. a16z suggests adopting a "digital goods" regulatory framework, retaining the existing Howey test standards, and recommends preventing insider trading through decentralized control mechanisms. At the same time, the company argues that the underlying technical operations of blockchain systems (such as consensus algorithms, mining, staking, and smart contract execution) should not be classified as regulated financial activities.