a16z: What does Trump’s victory mean for cryptocurrency?

Original title:A Positive Path Forward

Author：Miles Jennings、Michele Korver、Brian Quintenz，a16z crypto

Edit：0xjs，Golden Finance

Cryptocurrency founders are asking us questions about what the recent US presidential election means for their projects. We told them that there was a golden opportunity to provide the world with the best cryptocurrency on the basis of bipartisan cooperation in the last Congress.

The coming months are expected to be filled with speculation and “hot issues” about what will happen on the legislative and regulatory front. Most of it is just noise. True, it’s too early to tell now how everything will unfold, but what we do know is that this has major implications for the industry. We are very optimistic that the government will now foster innovation, accelerate progress, and ensure the crypto ecosystem thrives in the United States.

This will allow us to realize many exciting consumer benefits in the future: allowing people to own their digital identities, providing new business models for creativity, and low-cost or free cross-border transactions using stablecoins. providing new ways for small businesses like restaurants to interact with customers, the emergence of decentralized social networks, advances in physical infrastructure like energy grids, and blockchain for the democratization of AI and gaming. There are more things you can’t imagine.

The good news is that there is now a constructive line of contact with regulators and legislators that can bring about regulatory clarity. Now you should feel empowered to explore all the innovative products and services based on blockchain, including tokens. We may have greater experimental flexibility, but we must not forget that the basic regulatory principles governing blockchain systems remain unchanged. This means that the principle “where there is trust, there is regulation” still applies. You must therefore continue to focus on eliminating any elements of centralization or trust dependencies within your projects, as these areas will continue to be subject to regulatory review.

Over the next year, we will advocate for a clear regulatory framework to promote and support innovation and decentralization. This presents both an opportunity and a responsibility for builders. By developing your project, you can actively shape how decentralized protocols can eliminate risk and justify new regulatory approaches.

This provides a decentralized path for bona fide entrepreneurs and protects consumers through early detection of scams and scams.

No matter how new legislation or the regulatory environment is adjusted, regulators and policymakers will still conduct effective reviews of certain aspects of the industry. Especially for token issuance, the principle guidelines in our Token Issuance Manual still apply.

Going forward, we should expect that these clear rules will make it easier to identify and block bad actors (similar to FTX) and allow good-intentioned projects to take flight. This can help protect consumers and rebuild trust and confidence in technology. Previous approaches to law enforcement regulation lacked regulatory clarity, hindering good actors and neglecting bad actors, negatively impacting consumer interests and unfairly eroding trust in the sector.

But for many, concerns about regulatory overreach have put off using tokens to distribute control of projects and build communities. Now you should feel more confident about using the token as a legitimate tool in your projects. We will also soon announce a new use of the Decentralized Nonprofit Organizations Association (DUNA) for projects seeking to settle in the United States, avoid liability for token holders, manage tax and compliance requirements, and stimulate more economic activity. We will be releasing a guide.

The outlook for cryptocurrency in the United States is bright. This is a great time to build in the U.S., and we are excited about the potential to ultimately achieve regulatory clarity.