Conference Presentation, Fireside Chat, Panel
a16z Podcast | The Regulatory Landscape for Crypto
- Government working groups are projected to merge into broader organizational functions over the next few years, though integration is already underway.
- Increased inter-agency coordination is anticipated, evidenced by recent joint actions and Senate Banking Committee testimony.
- Enforcement actions against non-compliant entities are expected to emerge from cases currently under seal, following timelines similar to the Theranos case.
- Legal scrutiny will likely target a relatively small percentage of cryptocurrency activity, focusing enforcement resources on the most significant violations.
- SEC legal actions and decisions are expected to increasingly establish boundaries between registered securities and utility tokens.
- The SEC's position on tokens may evolve to recognize non-security status for tokens operating on fully decentralized networks where utility, rather than investment, is the primary driver.
- Federal policymakers are expected to rely on industry groups and the cryptocurrency community for education regarding rapid technological developments such as AppCoins and AltCoins.
- State-level money transmission licensing requirements are projected to remain a significant compliance barrier for cryptocurrency exchange operators.
- The FTC is expected to increase oversight regarding exchange data breach management and customer privacy following incidents involving personal identifying information.
- Entrepreneurs operating offshore to avoid U.S. laws will remain subject to U.S. regulations if they service U.S. customers.
- Regulatory bodies are expected to prioritize enforcement against companies failing to demonstrate "best efforts" compliance while avoiding those actively building compliance programs.
- Regulatory-compliant companies, such as Coinbase, are expected to leverage legal compliance as a competitive differentiator when recruiting.
- The cryptocurrency policy landscape is projected to have matured significantly five years after 2012, moving beyond its initial developmental phase.