a16z gives six reform suggestions to the US SEC: relax securities identification, modify crowdfunding regulations, loosen broker-dealer restrictions...

VC giant a16z crypto of Web3 suggests that the SEC should immediately take six specific reform measures, from guiding Airdrop, modifying crowdfunding regulations to adjusting custody and trading commodity standards, to balance the relationship between investor protection and market innovation, and inject new vitality into the encryption industry in the United States. (Background: The SEC has established a 'Cryptocurrency Working Group' led by the encryption-friendly Hester Peirce: developing clear regulatory framework) (Background: U.S. fund companies apply to the SEC for TRUMP, DOGE, BONK...; meme coin ETF, Bloomberg analyst: too magical) The enforcement strategy of the U.S. Securities and Exchange Commission (SEC) in the encryption field has long been controversial and criticized for hindering innovation. With the departure of Gary Gensler, Scott Walker, the client lead of a16z crypto, and Bill Hinman, a partner advisor, recently co-authored a paper stating that the SEC should immediately take six specific and easily implementable adjustment measures to improve the regulatory environment, enhance market clarity, and accelerate innovation and capital formation. 1. Provide clear guidance on 'Airdrop' and reward mechanisms Airdrop is a core tool for achieving Decentralization in Block chain projects, often distributing assets to users for free or at very low cost. However, due to the lack of regulatory clarity, such activities often turn to overseas, causing American investors and developers to miss opportunities. a16z suggests that the SEC establish standards, such as: when the value of encryption assets mainly comes from their decentralized network operations, rather than the efforts of the issuer, the possibility of them being classified as securities can be excluded. 2. Modify crowdfunding regulations to adapt to the needs of encryption projects The current crowdfunding regulations have strict limits on the amount of funds raised and the participation of investors, which do not meet the decentralized nature and network effects required by Block chain projects. a16z suggests raising the fundraising cap (e.g. to $75 million) and allowing more non-accredited investors to participate under the premise of ensuring complete disclosure of information, bringing more extensive capital support to innovative projects. 3. Relax restrictions on broker-dealers to promote market liquidity The participation of traditional broker-dealers in the encryption field is restricted, making it difficult to legally trade or custody related assets. a16z suggests that the SEC establish a clear registration process, and collaborate with the Financial Industry Regulatory Authority (FINRA) to introduce regulations more suitable for the characteristics of the encryption market. At the same time, strengthen Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations to ensure market safety and transparency. 4. Solve custody and Settlement issues to attract institutional participation Due to unclear custody regulations and accounting treatment, many institutions are hesitant to enter the encryption market. a16z suggests providing guidance for custody, including standards such as Multi-signature Wallets, offline storage, and voting governance, and abolishing SEC Announcement No. 121, to avoid listing custodial assets as liabilities and reduce market entry barriers. 5. Reform the audit standards for exchange-traded products (ETP) a16z criticizes the SEC's current ETP audit standards as too conservative, such as relying on the 'Winklevoss test' that requires encryption assets to have a regulated 'significant market'. This has led to many innovative products not being approved. It is recommended that the SEC return to a more flexible market size test, while allowing for physical Delivery, reducing reliance on derivative products, and enhancing transparency and investment efficiency. 6. Establish a 15c2-11 certification mechanism to strengthen information disclosure a16z suggests referring to the traditional securities market's 15c2-11 rule, requiring trading platforms to certify encryption assets listed and provide necessary information such as design, risks, and functionality. At the same time, regulate exchanges to conduct regular due diligence to ensure the transparency and reliability of asset information. a16z's vision a16z believes that these measures can help the SEC reverse its primarily enforcement-based regulatory image, provide clearer regulations for the market, and attract more capital and innovation. In the long run, comprehensive regulatory frameworks still need to be established by Congress, but before that, these specific recommendations can bring substantial improvements to the encryption market. Related reports SEC establishes 'Cryptocurrency Working Group' led by encryption-friendly Hester Peirce: developing clear regulatory framework U.S. fund companies apply to the SEC for TRUMP, DOGE, BONK...; meme coin ETF, Bloomberg analyst: too magical SEC Chairman Gary Gensler officially resigns, what is the first step for encryption-friendly acting chairman Mark Uyeda? <a16z gives six reform suggestions to the U.S. SEC: relax securities identification, modify crowdfunding regulations, loosen broker restrictions...> This article was first published in BlockTempo, the most influential Block chain news media in the dynamic area.