Prominent venture capital firm Andreessen Horowitz (a16z) has sent four proposals to the U.S. Senate Banking Committee surrounding cryptocurrency and blockchain. The proposals were made in response to the committee's call for feedback to help clarify laws around decentralized technology and digital assets.
Consumer Protection and Inclusion.
- This proposal creates a disclosure-based supervision regime under the Consumer Financial Protection Act that creates regulatory clarity to ensure consumers get the information that they need to participate in web3 projects.
- The proposal looks to standardize the existing disclosures which many projects already provide.
Decentralized Autonomous Organizations.
- DAOs are quickly becoming a new organizational paradigm but still lack a uniform legal recognition that would allow them to conduct basic organizational functions like filing and paying taxes, opening bank accounts, signing legal agreements, and establishing limited liability for DAO members.
- This proposal creates a framework around the off-chain legal status of DAOs by leveraging existing laws related to unincorporated associations and tax reporting status.
- The proposal will also create a uniform regulatory approach across a multitude of federal agencies.
Comparing Jurisdictional Harmonization, SROs, and Nonprofit Corporations
- The proposal directs the Government Accountability Office to conduct a cost/benefit study on jurisdictional harmonization among agencies, establish an industry self-regulatory organization, and establish a nonprofit to provide technical oversight and standards-setting for decentralized technology.
Tax Reporting and Related Issues of Blockchain Ecosystems.
- This proposal builds upon the letter a16z sent to Senate leadership earlier this year to clarify taxation rules as they relate to digital assets.