With Donald Trump's return to the U.S. presidency, Andreessen Horowitz (a16z) is projecting a more favorable regulatory climate for the cryptocurrency industry.
Innovation Within Regulatory Boundaries
In a November 10 post, a16z acknowledged questions from crypto founders about potential changes. The company expects speculation about Trump’s stance on digital assets, cautioning that most of it may be 'noise.' Trump's return could create avenues for constructive engagement with regulatory agencies and laws that provide much-needed clarity. A central point is token issuance. Many founders delayed launching tokens due to regulatory fears, but a16z offers reassurance on the legitimacy of token use.
New Tools to Support Token Use and Compliance
The firm plans to promote structures that support innovation and consumer protection. It announced future guidance on the Decentralized Unincorporated Nonprofit Association (DUNA) framework to help projects base in the U.S., protecting token holders from liability and addressing tax and compliance needs. A16z hopes to facilitate token adoption by reducing regulatory and financial obstacles.
A16z’s Expectations and Prospects
The company, previously a supporter of Trump, sees an opportunity for legitimate crypto projects to regain momentum. It anticipates new rules making it easier to identify and eliminate bad actors, enabling 'well-meaning entrepreneurs' to develop secure innovative projects without excessive oversight.
Andreessen Horowitz views Trump's potential presidency as an opportunity for crypto projects to gain legitimacy and develop within regulatory frameworks without undue obstacles.
