Andreessen Horowitz Crypto (a16zcrypto) Exits UK Market to Focus on US, Wants Reg CF Updated to Support Crypto

Andreessen Horowitz’s crypto business, or a16zcrypto, is exiting the UK market. a16z opened its London office in 2023, intending to create a Crypto Startup School accelerator program.

Via XAnthony Albanese, head of crypto at a16z, said that while they are excited about crypto development in the UK, they have decided to focus their efforts on the US, given the change in government and the policy momentum around digital assets. The venture firm said it would be closing its London office.

Albanese added:

“This doesn’t change our confidence in the UK’s growing role in crypto and blockchain. We will continue to invest in great entrepreneurs no matter where they are in the world, including the UK. We also remain ready to help the UK with its ongoing crypto efforts.”

Some were describing the decision as being driven by the Labor government’s current “anti-business” policies.

Marc Andreessen has publicly stated that he decided to back Donald Trump for President following a disappointing meeting with the Biden administration. He has also noted that during the Biden administration, many of the crypto firms they have supported were debanked due to regulatory pressure.

In a blog post last week, a16z welcomed the change in government stating that as tech evolves so must the Securities and Exchange Commission (SEC) a regulator that has been decidedly anti-crypto the past four years.

“New leadership — plus the formation of a new crypto task force — gives the agency an opportunity to take meaningful action and adapt.  The time for that action is now: The market for crypto assets has grown in size and sophistication such that the SEC’s recent harmful approach of enforcement and abdication of regulation needs urgent updating. There is no other way to promote efficient markets, encourage innovation, and ensure investor protections are adopted as professional investment services begin to operate within this new industry. The principles underpinning the relevant securities laws — disclosure, fraud prevention, and market integrity — should remain sacrosanct. However, applying these principles in a way that reflects the distinct characteristics of crypto assets requires targeted regulatory changes.”

a16zcrypto also recommends that Reg CF (Regulation Crowdfunding) rules be updated to support funding for crypto firms, adding that the current limits must be improved. The firm recommends an increase to $75 million, a significant change as the cap now stands at $5 million. Reg CF, which only requires a notice filing, allows non-accredited investors to participate in a private securities offering.

The firm notes the need for bespoke rules on custody and settlement while suggesting that broker-dealers operate in the crypto sector without separate approvals. They also comment on secondary trading and decentralization, explaining the “SEC could permit regulated crypto trading platforms (both exchanges and brokerages) to trade any asset for which the platform can provide investors with accurate, current information.”

Regulatory clarity can support innovation and safeguard the public while helping the US compete in the growing market.

“The SEC stands at a pivotal moment in determining the future of crypto asset regulation. Creating a new crypto task force signals the Commission’s intention to change course from the previous administration. By taking the above crucial steps now, the Commission can begin to rotate away from its historic and heavily contested focus on enforcement efforts and add the much needed regulatory dimension of guidance and practical solutions…”

While Congress is working on crypto-friendly legislation, the SEC has announced a new Crypto Task Force seeking to concoct a bespoke framework for crypto. As President Trump has issued Executive Orders to support digital assets – requiring a working group to be launched, the stars appear to be aligned to foster an ecosystem that could make the US the top crypto market in the world.

 

 



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