The Commodity Futures Trading Commission (CFTC) is soliciting public feedback on its recommendations for regulating decentralized finance (DeFi). Venture capital firm Andreessen Horowitz (a16z) has submitted comments advocating for three key action plans. Firstly, a16z suggests that the CFTC issue non-action letters or interpretive guidance to clarify that certain blockchain protocols and smart contracts do not require registration if they meet specific conditions. Secondly, a16z recommends similar guidance for front-end applications with limited functionalities, ensuring they do not trigger registration obligations under various financial regulations. This includes clarifying compliance practices for eligible contract participants and user authentication. Lastly, a16z proposes the development of innovative exemptions or customized registration paths for applications that do not meet the aforementioned conditions. The firm highlighted that previous enforcement actions have confused protocols with application functions, creating uncertainty and stifling innovation in the U.S.