a16z crypto: In the new regulatory environment for encryption, tokens are expected to become "legal and compliant" tools

As former President Trump was re-elected on Tuesday, the cryptocurrency market continued to rise. Renowned venture capital firm a16z crypto sent a message to cryptocurrency founders: you can finally breathe a sigh of relief in terms of regulation. A16z pointed out in a new post: "The good news is that there is now a way to constructively engage with regulators and legislators, which can bring regulatory clarity. You should all feel empowered to explore all breakthrough products and services supported by blockchain, including tokens." This post was written by the policy and regulatory head of a16z crypto and its general counsel, expressing optimistic expectations for relaxed regulation and governance of the cryptocurrency industry under the new government. However, currently most speculations about these system details are just "noise".

The post specifically points out that token issuance is an activity that founders can have more confidence in: "For many of you who have been delaying using tokens to distribute project control rights and establish communities due to concerns about over-regulation, you should now be more confident in using tokens as legal and compliant tools for your projects."

Authors Miles Jennings, Brian Quintenz, and Michele Korver also mentioned a16z's plans for next year: "Next year we will advocate clear regulatory frameworks to promote innovation... We will soon release new guidelines on using Decentralized Non-corporate Non-profit Associations (DUNA). These associations aim at making America their headquarters while exempting token holders from liability management tax compliance requirements promoting economic activities," mentioning Wyoming's unique laws regarding DAOs. Although this article overall expresses optimism they also point out some actions may still violate regulations stating “While we might have greater flexibility for experimentation we must not forget basic regulatory principles applicable remain unchanged,” advising founders “to continue focusing on eliminating centralized aspects or reliance on trust within projects as these areas will continue being scrutinized.”