Paradigm, Multicoin, Galaxy, and Other Crypto Firms Jointly Support Senate Crypto Legislation Draft

On August 8, it was reported that Dan Robinson, General Partner and Head of Research at Paradigm, stated on the X platform that this week his team, together with Multicoin Capital, Chainlink, Electric Capital, Galaxy, Ribbit Capital, and Tribe Capital, sent a letter expressing their views on the Senate Banking Committee's draft legislation regarding cryptocurrency market structure. On the key issue of token securities regulation, the Senate draft takes a different approach from the CLARITY Act, which has already passed the House of Representatives. Paradigm believes that the Senate's "ancillary asset" proposal is more favorable to the crypto industry. While both bills are preferable to the difficult-to-apply and counterproductive "Howey Test" framework, the Senate draft is more concise and avoids forcing decentralized tokens and protocols into a rigid structure. It also includes exclusion clauses to prevent abuse, specifying that assets with certain statutory financial rights are not considered ancillary assets.