a16z calls for amendments to the encryption legislation draft, opposing the use of the existing definition of "ancillary assets" as a regulatory basis.

On August 1, according to Cointelegraph, venture capital firm Andreessen Horowitz (a16z) called on U.S. lawmakers to amend a proposed encryption regulation bill, warning that the framework may have serious loopholes that jeopardize investor protection mechanisms. In an open letter to the U.S. Senate Banking Committee, a16z suggested that regulators address the loopholes in the encryption legislation draft. This letter is a formal response to the discussion draft released at the end of July. The discussion draft is based on the CLARITY Act, aimed at soliciting industry opinions to advance regulatory legislation for encryption assets. a16z particularly pointed out issues with the definition of "ancillary assets" in the draft, a term referring to tokens sold through investment contracts that do not grant the buyer equity, dividends, or governance rights. The letter stated: "The structure of 'ancillary assets' should not serve as a legislative foundation without significant modification."