When considering how to govern the crypto industry, the US should look to China for lessons on how to act. This, according to Katie Haun, a partner at Andreessen Horowitz.
Delivering Alpha conference, Haun, a former federal prosecutor who now helps manage Andreessen Horowitz’s crypto investments, said, “This is an opportunity for the United States because we should be doing the exact opposite in my thinking in this arena of what China is doing. Earlier this year, China launched its own digital currency, the digital yuan, managed by the People’s Bank of China. The money will replace part of the existing cash. China has conducted real-world testing for the digital currency in locations including Shenzhen, Chengdu, and Suzhou.
Bitcoin and other cryptocurrencies were created to be uncontrollable by a central authority such as a bank or government. Crypto supporters believe this is the only way they can be trusted. According to Haun, China will “tie trade, loans, and other aid to the usage of essentially their stablecoin”. This is a sort of digital money that generally has backing from a currency. Some have connected the creation of the digital yuan to Beijing’s intensified efforts to crack down in the broader crypto sector.
According to Haun, the United States has adopted the correct approach to central bank digital currencies, or CBDCs, thus far.
Good faith efforts
Haun also weighed in on the US regulatory issue, calling it a myth that the crypto business as opposed to all regulation. It isn’t that the industry opposes the law,” Haun explained. It seeks clarity but does not wish to be viewed as a monolith.
Haun cited non-fungible tokens, or NFTs, as an example of digital collectibles. Why should such a financial product and service go through regulations? We don’t believe it should be, Haun stated.
In her perspective, Haun expressed dismay that the SEC is punishing crypto companies like Coinbase for striving to comply. Coinbase, which has Haun on its board of directors, recently reported receiving a Wells Notice from the Securities and Exchange Commission, which forced the company to postpone its plans to offer a loan product. It threatened to sue if the offering went ahead.
According to Haun, some people in the sector are receiving punishment despite their “good faith efforts,” while others who break regulations and laws “get a free pass.”