Regulation
Andreessen and Horowitz criticize Biden’s crypto regulations, reveal why they supported Trump
Andrée Horowitz (a16z) founders Ben Horowitz And Marc Andreessen recently discussed the various challenges the crypto industry has faced under the current administration, during which they also approved former president Donald Trump.
The founders have been outspoken critics of the Biden-Harris administration’s handling of the cryptocurrency sector, highlighting a series of regulatory challenges that they say are stifling innovation and growth in the sector.
During the podcast conversationHorowitz and Andreessen detailed their frustrations with the Securities and Exchange Commission (SEC). They noted that the regulator has not provided clear guidance on which cryptocurrencies are considered securities and which are commodities.
Gemini founder Tyler Winklevoss said in a social media post On July 24, the discussion is a “must-see” and highlights “how much the Biden–Harris The administration has been involved in the crypto industry.
Regulatory ambiguity
This regulatory ambiguity has led the SEC to file lawsuits against more than 30 cryptocurrency companies in the a16z portfolio. Andreessen noted that such aggressive enforcement is unprecedented, as neither he nor Horowitz had encountered a single Wells notice in their 30-plus year careers prior to this administration.
SEC lawsuits, even if unsuccessful, pose significant challenges for crypto startups. Horowitz noted that while the SEC often loses these cases, the financial and operational pressure startups face to defend themselves against the government’s considerable resources is overwhelming. He called these victories “Pyrrhic,” suggesting that the cost of legal battles is detrimental to the industry’s sustainability.
The discussion also touched on the Federal Deposit Insurance Corporation (FDIC), which would have made it nearly impossible for cryptocurrency businesses to obtain banking services. Horowitz and Andreessen likened this to “Operation Chokepoint 2.0,” comparing it to previous efforts that targeted legal cannabis businesses, effectively forcing them to operate without access to traditional banking systems.
Another major point of contention is President Biden’s position. veto of bipartisan repeal from Staff Accounting Bulletin (SAB) 121. This SEC rule complicates the ability of banks to hold cryptocurrencies on behalf of their customers, making them liable for any decrease in the value of the digital assets they manage.
Andreessen criticized the regulation as deliberately harmful to the crypto industry, designed to prevent banks from engaging in digital assets.
Doesn’t want to commit
The co-founders said their efforts to engage with the administration have met with resistance. They revealed that President Biden, SEC Chairman Gary Genslerand the senator Elizabeth Warren all refused to meet with them to discuss their concerns.
This lack of commitment stands in stark contrast to previous administrations, where Andreessen worked successfully with leaders such as Bill Clinton and Al Gore in the early days of the commercial Internet.
In contrast, former President Donald Trump has shown a willingness to engage with crypto leaders and has adopted a support position towards the industry. Its platform includes ambitious goals building a strong economy, championing innovation and being a global leader in emerging industries, with a particular focus on crypto.
Trump has publicly stated that he opposes the creation of a central bank digital currency (CBDC) and that he would defend the right to mine Bitcoin. He has also defended the right of Americans to hold their own digital assets and transact without government oversight.
The former president also critical Biden and Gensler have praised their stewardship of the industry and pledged to change the government’s approach if elected.