Stablecoin regulatory transparency is needed to avoid the ‘FTX-level problem’
Chris Dixon, co-founder of Andreessen Horowitz's a16z Crypto subsidiary, recently discussed his views on stablecoin regulation and the need for greater transparency from the United States government.
Dixon's comments came during a speech at the Unlicensed III event in Salt Lake City, Utah.
Chris Dixon speaking at the “Unlicensed III” event in Salt Lake City. Source: Cointelegraph
Dixon started off on a positive note, noting that the cryptocurrency market as a whole has begun to overcome many of the early technological barriers or gates.
In the current market, “there are two big gating factors,” says Dixon, “one is infrastructure and the other is policy clarity.”
Policy transparency
Dixon's position in the investment world gives him a unique perspective, bridging both traditional financial and digital asset markets.
While many analysts say big investors aren't paying attention to application-layer startups, according to Dixon, that hasn't been his experience:
“At least half of the investments in the last few years have been in the implementation layer,” he says. However, “the problem is that they can't build what they want to build because they're afraid they're going to spend the next five years in court.”
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Dixon said there is potential for “real renaissance and openness” in the digital assets space, with new entrepreneurs, applications and development fueling new ideas. According to him, the infrastructure is in place but lack of regulatory transparency is holding the entire sector back.
“I would argue that one of the many tragedies of the current regulatory system is that not only are good actors being pursued, but fraud and bad actors are at an all-time high. […] They just ignored those.
Dixon advocates a regulatory policy that prioritizes transparency over high-profile pursuits and weeds out “cheats” and other bad actors to make way for good actors. “Number one for the consumers, but number two, for the industry,” he said. If we don't check this, there may be an FTX-level problem.
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