Andreessen Horowitz expects an improved regulatory environment for cryptocurrencies in the United States

What’s new? The cryptocurrency division of the leading venture capital fund Andreessen Horowitz (a16z) had said after Donald Trump’s victory in the US presidential election that the government will now encourage innovation and a thriving digital asset ecosystem. The authors of the article note that the election results have paved the way for constructive engagement with regulators and regulatory clarity.

Article by a16z

What else is known? a16z intends to advocate for a clear regulatory framework that promotes innovation and decentralization while protecting consumers from fraudsters.

According to the article’s authors, clear regulations will make it easier to identify and eliminate unscrupulous participants such as crypto exchange FTX in the future, helping to restore trust in blockchain technology.

a16z also criticized the Securities and Exchange Commission (SEC) for its approach to regulating the industry through enforcement actions, namely filing lawsuits. They note that this policy hinders bona fide players while doing nothing to discourage scammers, which has hurt consumers and undermined confidence in the industry.

“We’ve been flooded with crypto founders asking us what the recent election means for their projects. We have told them that we have an incredible opportunity to build on the bipartisan progress from the last Congress and bring the best of crypto to the world,” the article states.

Analysts of a16z crypto emphasized that in the next few months, we should expect many loud predictions regarding changes in the regulatory environment, but most of them will not come true.

Nevertheless, the company is optimistic about creating friendly rules, which will allow the development of such areas as cross-border transactions with stablecoins without fees, decentralized social networks, physical infrastructure, AI-based blockchains, and digital identifiers.

Earlier, the advocacy organization Stand With Crypto published data on its website that 268 supporters of cryptocurrencies were elected to the lower house of Congress (House of Representatives) and 19 to the upper house (Senate). Opponents of digital assets took 122 and 12 seats, respectively.

Thus, cryptocurrency-friendly bills will not meet much resistance on the way to adoption.

In addition, in May of this year, the House of Representatives has already passed the Financial Innovation and Technology for the 21st Century Act, known as FIT 21, which was highly appreciated by representatives of the crypto industry.

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Earlier, a16z said that the global number of crypto users peaked at 617 million in September, with a total of more than 220 million active addresses in 2024.

On the day of Trump’s victory, the bitcoin exchange rate hit an all-time high, rising above $75 300. Overall, since the election day on November 5, BTC has added 21,2% and reached $81 674 by November 11, which is a record high for the asset’s all-time high.

The market reacted positively to the re-election of the 45th President of the United States. The president stated the need to make the country a global center of blockchain technology, mine all remaining bitcoins on its territory, and create a national BTC reserve.

CoinShares noted that if the relevant bill is passed, the US authorities will purchase up to 5% of the bitcoin supply.