Andreessen Horowitz (a16z) is gearing up for taking steps to regulate the crypto industry. This week, the Venture capital will send its executives to Washington, DC, to propose crypto regulations.
With more than $3 billion investments into crypto and web3, the company confirmed its talk with top executive officers, white house leaders, and the Senate to expand the vision of a16z web3 of the company.
According to the country, web3 will include a set of technologies, including cryptographic protocols, blockchain, digital assets, decentralized finance, and social platforms. The company emphasized having a proper, crypto-specific legal structure to achieve the digital and financial revolution.
Tomicah Tillemann, the head of a16z policy, told CNBC:
“Web3 emerges as the alternative to a digital status quo that is honestly broken…Web3 is the answer; it is the solution we all need. It is the response to the concerns that have emerged from web2. And for that reason, it is crucial for policymakers to start undertaking the steps required to get things right.”
a16z on Short-term and Long-term goals
a16z pointed out the existing and possible crypto problems which can be solved using a clear legal framework. The firm further added that the laws should provide a safer digital infrastructure and practical regulations to the decentralized system.
The company has come up with a risk-specific solution based on the product offerings. It said that the industry needs the indulgence of more agencies to help the Securities and Exchange Commission (SEC) in regulating crypto.
It would be interesting to see how the US government reacts to the system. The biggest question is would it understand the prominence of enhanced digital infrastructure. Tillemann said that the Consumer Financial Protection Bureau should come forward for immediate actions of fraud handling.
However, the government needs to wake up and opt for solid infrastructure to regulate the crypto sphere for the long-term.