The United States Is Losing Its Crypto Dominance, Andreessen Horowitz Warns Amid Stifling Regulations.
30 Apr 2023, 08:00
The United States Is Losing Its Crypto Dominance, Andreessen Horowitz Warns Amid Stifling Regulations
Venture Capital firm Andreessen Horowitz has stressed that the government’s stance toward cryptocurrency regulation in the country is stifling innovation in the industry.The United States, home to 40% of digital asset developers in 2018, has seen that number slide below 30% in 2022. The firm tips clearly defined regulations and an approach by regulatory agencies that protect users while encouraging innovation in the sector. As more digital asset firms become victims to the bottleneck approach of United States regulators, several industry experts have bemoaned the current reality, with some accusing regulators of ‘killing the sector.’
In its periodic State of Crypto report, a16z, the investment arm of Andreessen Horowitz, stated the recent string of enforcement actions by regulators is gradually taking digital asset innovation away from the United States. The report highlights how dwindling leadership leads to uncertainty in the space.