a16z: What Trump's victory means for crypto projects

Author: Miles Jennings, General Counsel and Head of Decentralization, a16z Crypto; Michele Korver, Head of Regulation, a16z Crypto; Brian Quintenz, Head of Policy, a16z Crypto; Translated by: 0xjs@黄金财经

Crypto founders have been asking us what the recent US election means for their projects. We told them that we have a great opportunity to build on the bipartisan cooperation of the last Congress and bring the best cryptocurrency to the world.

Over the next few months, expect to hear a lot of speculation and "hot topics" about what will happen on the legislative and regulatory fronts - the vast majority of which are just noise. The fact is that it is too early to tell how everything will develop, but what we do know is that it means a lot to the industry. We are very optimistic that the government will now promote innovation, accelerate progress, and enable the crypto ecosystem to thrive in the United States.

This will enable us to realize the many consumer benefits we are excited about in the future: enabling people to own their own digital identity, new business models for creatives, low-fee or free cross-border transactions using stablecoins, new ways for small businesses like restaurants to engage with their customers, the emergence of decentralized social networks, the development of physical infrastructure like energy grids, and blockchains that democratize AI and gaming, and more we can’t even imagine yet.  

The good news is that there is now a path to constructively engage with regulators and legislators to bring regulatory clarity. Now you should all feel empowered to explore all of the groundbreaking products and services that blockchain supports, including tokens. While we may have greater flexibility to experiment, we can’t forget that the fundamental regulatory principles that apply to blockchain systems remain the same. This means that “where there is trust, there is regulation” still applies. Therefore, you should continue to focus on removing centralized aspects or reliance on trust in your projects, as these areas will continue to receive regulatory scrutiny.  

Over the next year, we will advocate for clear regulatory frameworks that promote and support innovation and decentralization. This is both an opportunity and a responsibility for builders - you can actively shape the future by developing projects that demonstrate how decentralized protocols can remove risk and justify new regulatory approaches. This will provide a path to decentralization for well-intentioned entrepreneurs while protecting consumers by ensuring scams and fraud are caught early. Regardless of new legislation or how the regulatory environment adjusts, regulators and policymakers will still have effective scrutiny of certain aspects of the industry. This is particularly true for token offerings, where the principled guidance in our Token Offering Handbook still applies. We should expect that in the future these clear rules will make it easier to identify and shut down bad actors (similar to FTX) while allowing well-intentioned projects to take off. This will both protect consumers and rebuild trust and confidence in the technology. The lack of regulatory clarity in previous approaches to enforcement has both hindered good actors and enabled bad ones, actively harming consumers and unfairly undermining trust in the space.

However, for many people who have been put off using tokens to distribute project control and build community due to concerns about overregulation, now you should have more confidence that projects can use tokens as a legitimate tool. We will also soon be releasing new guidance on the use of Decentralized Nonprofit Associations (DUNAs) for projects looking to make their home in the US, insulate token holders from liability, manage tax and compliance needs, and facilitate more economic activity.

The future of cryptocurrency in the US is bright — there has never been a better time to build here, and we’re excited about the possibility of finally achieving regulatory clarity.