a16z Calls on Global Leaders for “Targeted” Regulation of DeFi, Stablecoins, and Web3

This article comes fromDecrypt, original author: Jeff Benson

Odaily Translator | Nian Yin Si Tang

This article comes from

Odaily Translator | Nian Yin Si TangdocumentEveryone has a different idea of ​​what crypto regulation should look like. After seeing major cryptocurrency exchanges Coinbase, FTX and Binance lay out their visions, a16z, a venture capital firm that has been funding numerous crypto startups and unicorns, came up with its own proposal.

Andreessen Horowitz (a16z for short) in a paper entitled "How to build a better Internet: 10 principles from world leaders shaping the future of Web3"

document

In it, a multi-stakeholder approach to governance involving government, business and civil society groups is advocated. It also speaks out for stablecoins anchored to fiat currencies, hoping to make them "well regulated" and help improve the financial system. Stablecoins are known to offer easy access to decentralized protocols, but U.S. officials have been wary.“Decentralized financial technologies are already processing hundreds of billions of dollars in daily transaction volume and provide compelling evidence that there is a path to instant, global, 24/7 financial rails,” a16z wrote in the report “Stablecoins are the foundation upon which this financial innovation takes place.”a16z also recommends that countries cooperate on encryption standards, more transparent tax codes and "targeted" regulatory regimes to recognize the diversity of Web3 technologies. "Treating all digital assets in the same way is like having a single legal regime covering stocks, real estate, cars, art, watches and trading cards," it said.

In October last year, Coinbase, one of a16z's investment targets, proposed policy guidelines for the US market. The proposal calls for the creation of a "single federal regulator" to oversee token and market registrations and enforce consumer protections. The plan was seen as requiring the creation of a new regulatory agency, which led to a call from Robinhood Chief Legal Officer Dan Gallagher.laugh at, which he called “one of the dumbest ideas I’ve heard in this space in a long time.” Coinbase later told Decrypt that the plan was “open to regulators” and thus didn’t necessarily require a new agency.

Late last fall, Coinbase rival exchange FTX also released its ownPolicy documents, the document focuses primarily on regulations in the United States, but may apply to other jurisdictions as well. It calls for a "primary market regulator" that could cover both spot and derivatives markets; in the US, the Securities and Exchange Commission (SEC) primarily oversees the former, while the Commodity Futures Trading Commission (CFTC) is responsible for the latter.

Sandwiched between these two in-depth proposals is Binance’s

Encryption Bill of Rights. Binance, which will be targeted by regulators in various countries in 2021, succinctly explained the reasons for regulation in its documents. For example, it says: “Markets offering derivatives should be properly regulated. This ensures that all users meet eligibility requirements and that their trades are settled fairly.” Binance did not elaborate on what “proper” means.In addition to the major exchanges, other crypto companies have issued guidelines, including Ripple Labs, which is currently dealing with a $2.3 billion SEC lawsuit against it and its executives.

Like Binance’s proposal, a16z’s proposal leaves room for readers to paint some pictures. Given the size of a16z's investments in the crypto space, its own position is naturally clear, but readers can't help but wonder whether its so-called "well-regulated" version of stablecoins and Federal Reserve Chairman Jerome Powell (Jerome Powell)

Calls for 'Proper Regulatory Framework' for StablecoinsWhat is the difference.Still, the a16z document, while aimed at "world leaders" rather than the United States, also shows that a growing number of U.S. policymakers and lawmakers want clear frameworks for companies to legally create, sell or hold tokens. coins and other digital assets.