a16z’s Arianna Simpson Says Lack of Specific Guidelines is Pushing Crypto Firms Offshore

cryptonews.com:

a16z General Partner Arianna Simpson believes the US needs to establish a regulatory framework that instills confidence in crypto firms and allows them to build technology products without fear of potential consequences.

Simpson claimed that the lack of specific guidance in the US is causing legitimate crypto companies to seek opportunities offshore.

“The lack of specific guidance here in the U.S. is actually pushing legitimate companies offshore, because they actually want to be compliant,” she said in an interview with TechCrunch. 

Simpson's comments come at a time when major US regulators have launched an aggressive crackdown on the crypto industry following the unprecedented collapse of the crypto exchange FTX.

The US Commodity Futures Trading Commission and the Securities and Exchange Commission have both taken enforcement actions against some of the biggest players in the industry, including Binance and Coinbase. 

"The U.S. has some work to do to create a regulatory framework that makes founders feel comfortable and like they’re able to actually build great technology products here without worrying about possible repercussions."

Simpson, with over a decade of experience in the crypto space, said that repetitive cycles are a common occurrence in the history of this nascent industry. 

"There's a lot of kind of boom-and-bust moments... You can't expect a space to continue with the same sort of capital investment across all quarters," she said. 

While investment and funding rounds are expected to rebound in the future, Simpson emphasized that founders should not wait for the market to regain popularity. 

In fact, she highlighted that periods with fewer funding rounds often coincide with increased development and innovation in