with former President Trump's reelection on Tuesday, the cryptocurrency market continues to rise, and the famous venture capital firm a16z crypto has sent a message to cryptocurrency founders: you can finally breathe a sigh of relief in terms of regulation.
In a new post, a16z pointed out: "The good news is that there is now a constructive way to engage with regulators and legislators, which can bring regulatory clarity. You should all feel empowered to explore all the breakthrough products and services supported by blockchain, including tokens."
The post was written by a16z crypto's policy and regulatory head and its general legal counsel, and expressed optimistic expectations for the relaxed regulation and governance of the cryptocurrency industry under the new government, although the "vast majority" of speculation about the details of this system is currently just "noise."
The post specifically pointed out that token issuance is an activity that founders can have more confidence in: "For many of you, because of concerns about excessive regulation, you have been delaying the use of tokens to distribute project control and build communities. Now you should have more confidence in using tokens as a legitimate and compliant tool for your projects."
Authors Miles Jennings, Brian Quintenz, and Michele Korver also mentioned a16z's plans for next year: "Next year, we will advocate for clear regulatory frameworks to promote and support innovation and decentralization... We will also soon release new guidance on using decentralized non-profit organizations associations (DUNA), which are designed to make the United States their headquarters, to relieve token holders of responsibility, manage tax and compliance requirements, and promote more economic activity," and mentioned Wyoming's unique laws regarding DAOs.
Although the article is overall optimistic, the authors also point out that some actions may still violate regulatory rules, "Although we may have greater flexibility to experiment, we cannot forget that the basic regulatory principles applicable to blockchain systems remain unchanged," and advise founders to "continue to focus on eliminating centralization or reliance on trust in their projects, as these areas will continue to be subject to regulatory scrutiny."
