a16z crypto: Tokens are expected to become "legal and compliant" tools in the new crypto regulatory environment

As the cryptocurrency market continues to rise following former President Trump's reelection on Tuesday, the well-known venture capital firm a16z crypto has a message for cryptocurrency founders: You can finally breathe a sigh of relief when it comes to regulation. A16z noted in a new post: "The good news is that there is now a path to constructively engage with regulators and legislation that can bring regulatory clarity, and you should all feel empowered to explore all the breakthrough products and services supported by blockchain, including tokens." The post, written by a16z crypto's head of policy and regulation and its general counsel, offers optimistic expectations for the relaxation of regulation and governance in the cryptocurrency industry under the new administration, although the "vast majority" of speculation about the details of such a system is currently just "noise." The post specifically notes that token issuance is an activity founders can feel more confident about: “For many of you who have been put off using tokens to distribute project control and build community due to concerns about overregulation, now you should feel more confident that your project can use tokens as a legal, compliant tool.” Authors Miles Jennings, Brian Quintenz, and Michele Korver also mentioned a16z’s plans for the next year: “Next year, we will advocate for clear regulatory frameworks that promote and support innovation and decentralization… We will also soon release new guidance on the use of Decentralized Nonprofit Associations (DUNAs) that are designed to be U.S.-based, insulate token holders from liability, manage tax and compliance requirements, and promote more economic activity,” and mentioned Wyoming’s unique law on DAOs. While the post is generally optimistic, the authors also note that some actions may still fall foul of regulators, “While we may have more flexibility to experiment, we must not forget that the fundamental regulatory principles that apply to blockchain systems remain the same,” and advise founders to “continue to focus on eliminating centralized aspects or reliance on trust in your projects, as these areas will continue to receive regulatory scrutiny.”