Paradigm, Multicoin, Galaxy, and other crypto institutions have joined forces to support the Senate's draft crypto legislation

On August 8th, Dan Robinson, general partner and head of research at Paradigm, said on the X platform that this week his team joined Multicoin Capital, Chainlink, Electric Capital, Galaxy, Ribbit Capital, and Tribe Capital to send a letter expressing their views on the draft cryptocurrency market structure legislation released by the Senate Banking Committee. On the key issue of token securities regulation, the Senate draft is different from the CLARITY Act, which has been passed by the House of Representatives.
Paradigm argues that the Senate's "ancillary asset" plan is more beneficial to the crypto industry. While both bills are better than the "Howie test" system, which is difficult to apply and creates adverse incentives, the Senate draft is more concise and avoids decentralized tokens and protocols adapting to a rigid framework. It prevents abuse through an exclusion clause, that is, assets with legal rights to specific financial interests are not ancillary assets.