A16z envisions a “legitimate and lawful” future for crypto tokens under Trump

With former Donald Trump re-elected to the presidency of the United States, Andreessen Horowitz, also known as a16z, is projecting a more favorable regulatory climate for the cryptocurrency industry.

The venture capital firm believes this could transform most crypto tokens into “legitimate and lawful” financial tools.

Innovation within regulatory limits

In a November 10 post, a16z acknowledged questions from cryptocurrency founders seeking clarity on what this new administration may mean for their projects.

The company anticipates more speculation about the incoming Trump administration’s stance on digital assets, but cautions that the public should expect most of it to be “noise.”

However, he believes Trump’s return to office could create an avenue for “constructive engagement” with regulatory agencies, as well as legislation that could finally bring the kind of clarity that many in the crypto industry have been calling for.

A central point highlighted in the declaration is the issuing of tokens. For many founders who have delayed launching tokens due to regulatory fears, the company’s message is reassuring:

“For many of you who have put off using tokens to distribute control of your project and build community due to fear of over-regulation, you should now be more confident in using tokens in your project as a legitimate and legal tool”.

However, a16z stressed the importance of following fundamental guiding principles. He advised cryptocurrency founders to focus on removing “centralized aspects or trust dependencies” within projects, as these areas are known to attract regulatory scrutiny.

New tools to support token usage and compliance

The post also outlined plans for future a16z defense efforts. These include promoting rule-making structures that support innovation and consumer protection.

The company announced the upcoming release of new guidance on the Decentralized and Unincorporated Nonprofit Association (DUNA) framework. These instructions are intended to help projects make the United States their home base, while protecting token holders from liability and addressing tax and compliance needs.

Through this plan, the crypto VC giant hopes to encourage greater adoption of tokens by reducing regulatory and financial hurdles for US-based projects.

The company believes the DUNA framework will support a wider range of crypto businesses by streamlining compliance, making it easier for legitimate projects to thrive in a regulated environment.

Ultimately, a16z, which previously supported Trump through donations, sees the next few years as an opportunity to regain momentum for legitimate crypto projects in the country.

It provides new and improved rules that will make it easier to identify and shut down bad actors. In turn, this will allow “well-intentioned entrepreneurs” to develop secure and innovative crypto projects without unnecessary oversight hurdles.

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