Biden Administration ‘Lied’ About Crypto: a16z Founders

• The co-founders of a16z expressed their desire to have a favorable policy under the Trump administration. 
• The duo stated that investors lacked protection under Joe Biden’s governance. 
• Horowitz accused the financial regulators in Biden’s tenure of providing “false promises” to crypto traders.

Following Donald Trump’s recent election victory, a16z co-founders Marc Andreessen and Ben Horowitz expressed hope for a more favorable regulatory environment under the new administration. In an interview on Wednesday, the duo criticized the Biden administration, highlighting its perceived hostility toward cryptocurrency.

Further, the duo raised concerns over the government’s failure to protect investors and its impact on the crypto market and hoped that Trump would provide favorable policies. 

Horowitz and Caitlin Long Criticize Regulatory Failures

Horowitz accused financial regulators during Biden’s presidency of making “false promises” to crypto traders. He alleged that despite assurances to protect investors, defunct exchanges like FTX and Alameda Research were allowed to operate unchecked, manipulating user funds and destabilizing the market.

Further, Horowitz noted that the regulators under the Biden administration let “all the crazy fly-by-night memecoins and scams run” so that it would make investors lose their trust in the crypto market. Caitlin Long, founder of Custodia Bank, echoed Horowitz’s concerns, expressing optimism for the crypto sector under Trump’s administration.

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On the other hand, Andreessen summarized the treatment of crypto under the Biden administration as anarcho-tyranny. The theory states that in a region, if a person does not follow the law, they would be overlooked, whereas, if anyone abides by the law, they “will be tortured to death.” 

“If you’re a violent drug addict you can have free reign on the streets, and if you want to open an ice cream parlor, God help you.”

Jesse Powell, the co-founder and chairman of crypto exchange Kraken, agreed with Horowitz and Andreessen’s statements.

Recalling his 2023 speech, Powell accused U.S. regulators of deliberately allowing crypto firms to fail, eroding investor confidence. Kraken, Binance, and Coinbase have all faced scrutiny from the SEC, further fueling concerns over the agency’s regulatory stance.