a16z urges Senate to remove ancillary-asset carve-out in CLARITY Act

Venture capital firm Andreessen Horowitz (a16z) told the U.S. Senate Banking Committee that the draft digital-asset market structure legislation’s “ancillary asset” definition could create dangerous loopholes and conflict with the Howey test, warning it would undermine investor protections. The firm recommended scrapping that category, adopting the U.S. CLARITY Act’s narrower “digital commodity” framework and codifying a control-based decentralization model to ensure tokens lose securities status only once operational control is fully relinquished, according to Cointelegraph.