US Should Embrace Crypto Unlike China

Katie Haun, a16z partner, said that the U.S. should be looking towards China when deciding what to do at CNBC’s Delivering Alpha conference on September 29.

She was referring specifically to Beijing’s incessant crackdowns against the crypto industry, and any activities that are related to the trading of digital currencies.

She believes that financial regulators in the U.S. should do the exact opposite. However, at the moment it seems they are following China’s lead with moves to regulate crypto more than ban it.

“This is an opportunity for the United States, because we should be doing the exact opposite in my mind in this realm of what China is doing,”

Don’t Follow China

Haun, who is currently managing Andreessen Horowitz’s crypto investments, predicted that China would “tie trade and tie loans, tie any assistance to the use essentially their stablecoin,” or CBDC.

CNBC reports that she said the U.S. has the right approach to a digital currency central bank.

“I’m glad we’re studying as a country CBDCs, but we’ve publicly said as a country that we’re going to keep studying it for a couple of years. I think it’s really important that policymakers and private industry in the U.S. work together.”

Others in the industry have criticized Uncle Sam’s lazy approach to predicting their demise. Jerome Powell, the Federal Reserve chair, stated in April that a CBDC of Chinese design would not work in America. He suggested that it was one that allowed the state to monitor all financial transactions.

Haun said that not all players in the crypto industry were against regulation. He stated, “It’s certainly not that the industry doesn’t want regulation,” before adding that, “It needs clarity, but it does not want being treated as a monolith.”

Crypto Regulation May Stifle Progress

She stated that “regulation cannot be uniform” in reference to NFTs, noting that they should not be considered a financial product or service.

He expressed dismay at the Securities and Exchange Commission’s decision to penalize Coinbase for its Lend product. She stated that some companies are being punished despite their “good faith efforts”, while others “are really getting an exemption” from regulations.

As the Biden administration empowers anti-crypto legislators, the current state of regulation in America is quite grim. Recent developments include the appointment of Saule Omarova, a staunch crypto and banking critic, to the Office of the Comptroller of the Currency.