The American venture capital firm, Andreessen Horowitz (a16z) emphasized its optimism about the regulatory environment under Trump’s government in a statement published on its website.
The VC firm shared its thoughts about recent developments in the crypto market, where tokens such as Bitcoin and Ethereum are on historic runs following the November elections. It believes the new administration will support innovation and create opportunities for crypto to thrive in the United States.
a16z is ‘very optimistic that the government will now foster innovation’
In the post credited to Miles Jennings (General Counsel and Head of Decentralization), Michele Korver (Head of Regulatory), and Brian Quintenz (Head of Policy), a16z’s crypto policy and regulation team shared its perspective on the recent frenzy in the crypto market regarding what changes to expect in the immediate aftermath of the elections.
It maintained that while it’s premature to predict the outcome of the elections, it would no doubt affect the industry.
The a16z team seems convinced that the new administration will favor the crypto ecosystem, stating, “We’re very optimistic that the government will now foster innovation, accelerate progress, and enable the crypto ecosystem to thrive in the U.S.”
It’s a given that the industry stands to benefit from a supportive environment.
In the missive titled “A Positive Path Forward,” the team boldly showed its optimistic position, joining others, such as Cardano’s founder, in making bullish predictions regarding the new administration and crypto. It focused on the positive changes that could come, such as giving users ownership over their digital identities, low—to no-fee cross-border transactions with stablecoins, and new methods for businesses to interact with their customers.
Decentralization should be the new normal
The a16z team encouraged crypto founders to remove “centralized aspects” and “dependencies on trust” from their projects, as these are features that attract scrutiny.
The post went further to say that a16z will advocate for clear regulatory frameworks that protect consumers while promoting and supporting innovation and decentralization.
Such clarity will help consumers distinguish reputable projects from bad ones and enable legitimate projects to take off. It will also allow entrepreneurs to build with confidence while also rebuilding the trust in the industry after incidents like the FTX collapse.
a16z also announced the upcoming release of new guidance on forming the Decentralized Unincorporated Nonprofit Associations (DUNA) to assist US-based projects in terms of tax management, liability protection for stakeholders, and legal compliance.
The election of the US’ first “crypto president” is a clear indication of the people’s priorities in an election cycle where pro-crypto groups came to the fore.
Donald Trump was vocal in his campaign about making the US a thriving center for blockchain innovation. a16z considers this a great opportunity for crypto founders to maintain economic growth while restoring consumers’ trust in digital assets.
According to the a16z trio, the future of crypto is bright, and everyone involved should be excited about the opportunities to come.
Source: https://www.cryptopolitan.com/future-of-crypto-in-the-us-is-bright-a16z/