Andreessen Horowitz Urges CFTC to Clarify Digital Asset Rules

2 mins mins

Key Points:

Andreessen Horowitz submitted comments on digital asset rules to CFTC.
Aims to foster innovation through regulatory clarity.
No immediate impact on major cryptocurrencies reported.

On November 28, 2025, Andreessen Horowitz (a16z) submitted detailed comments to the CFTC regarding the Presidential Working Group on Digital Asset Markets report in the United States.

These comments advocate regulatory clarity for blockchain protocols and apps, potentially steering U.S. digital asset innovation amid past enforcement challenges.

Andreessen Horowitz Advocates for Protocol Clarity and Exemptions

Andreessen Horowitz submitted recommendations to the CFTC regarding the clarification of blockchain protocols and applications to avoid unnecessary registration. Key areas include non-action letters for qualifying protocols and developing rules or exemptions for certain apps. The request follows the President’s Working Group report on Digital Asset Markets.

Clarity is sought to differentiate protocols from applications, as prior enforcement conflated them, causing uncertainty and stifling innovation in the U.S. These changes target improved compliance practices and innovative exemptions to boost blockchain development.

a16z Crypto Team, Andreessen Horowitz – “Our recommendations aim to clarify that blockchain protocols and limited-functionality applications should not be treated the same as fully operational decentralized exchanges under the Commodity Exchange Act.”

Industry leaders have not publicly commented directly on the submission, but CFTC Acting Chairman Caroline D. Pham reiterated commitment to eliminating outdated guidance. This theme resonates with a16z’s views on regulatory adaptation for emerging technologies.

CFTC Withdraws Guidance, Ethereum Faces Market Volatility

Did you know? CFTC’s withdrawal of outdated “virtual currencies” guidance in December 2025 marked a pivotal shift aimed at reducing innovation barriers, aligning with a16z’s advocacy for clearer regulations.

Ethereum (ETH), as reported by CoinMarketCap, trades at $2,934.94 with a market cap of $354.23 billion, reflecting a 24-hour decline of 3.55%. The trading volume stands at $28.79 billion, showing a 28.59% increase. Over 90 days, ETH exhibited a notable 34.69% decrease.

ethereum-daily-chart-2221 — Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 15:12 UTC on December 16, 2025. *Source: CoinMarketCap*

Coincu research suggests a clear regulatory path could stabilize market volatility. The emphasis on blockchain innovation could prompt financial shifts, as sound legal frameworks attract secure investments and bolster technological advancements.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.