Investment firm Andreessen Horowitz called stablecoins “the foundation of financial innovation” and called on governments to join forces to develop their regulation.
Andreessen Horowitz has published a document outlining guidelines for regulating the cryptocurrency industry. The company suggested using a “multi-pronged” approach, explaining that government agencies, industry organizations and community groups should be involved in developing a regulatory framework for cryptocurrencies. The researchers noted that regulators not only in the United States, but also in other countries, should work to solve this problem. In particular, they need to jointly develop standards for the operation of cryptocurrency firms and amend tax codes to adapt them to digital assets.
According to analysts at Andreessen Horowitz, the state’s unified approach to cryptocurrencies is similar to the universal legal regime for regulating stocks, real estate, cars and works of art. The authors of the document also mentioned that regulators in many countries are wary of stablecoins, since they consider them a threat to financial stability. However, experts at Andreessen Horowitz believe that if stablecoins are properly controlled, they can improve the financial system.
“Hundreds of billions of transactions are processed every day using decentralized financial technologies. This is compelling proof that payments and settlements can be done instantly, around the clock and internationally. Stablecoins are the foundation on which financial innovation is built, ”the report says.
Andreessen Horowitz is not the only company to have provided guidelines for setting rules for cryptocurrency firms. A few months ago, the Coinbase marketplace proposed the formation of an agency independent of the Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC) to regulate the cryptocurrency industry. In December, US Senator Cynthia Lummis announced the preparation of a bill containing provisions on cryptoassets and aimed at protecting consumers.
This demonstrates the willingness of industry participants to work with regulators, as well as a growing desire by legislators to establish clear rules to legally create, sell and store digital assets.
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