The renowned venture capital firm a16z has submitted its recommendations to the U.S. Commodity Futures Trading Commission (CFTC) regarding the digital assets report issued by the Presidential Working Group. The firm proposed several measures to enhance regulatory clarity, aiming to clearly define the legal status of “protocols” and “apps” within the scope of blockchain and smart contracts. a16z suggests issuing no-action letters or interpretive guidance for protocols that meet specific criteria, exempting them from registration requirements. Similarly, guidance should be provided for apps that satisfy user and functional standards to exempt them from registration obligations such as those applicable to FCMs, IBs, DCMs, and SEFs, while clarifying ECP and customer verification rules. For apps that do not meet these standards, a16z recommends creating new rules or specific exemptions to open pathways for special registration. The firm criticized previous government actions that failed to distinguish between protocols and apps, causing confusion and hindering innovation in the U.S. market. As digital assets and blockchain technology rapidly evolve, a clear and appropriate regulatory framework is essential to boost investor confidence and market stability. a16z’s proposals are viewed as a significant step toward protecting the U.S. digital currency and blockchain industry from legal complexities.
Source: binance
