According to a report by The Wall Street Journal on Sept. 1, Andreessen was speaking at a private conference organized by Andreessen Horowitz that hosted officials from the United States Treasury Department and financial regulators.
Marc Andreessen, co-founder of venture capital firm Andreessen Horowitz, has said that cryptocurrencies could solve some of the internet’s biggest challenges.
Crypto is like the internet
Per the report, Andreessen reiterated the popular comparison between cryptocurrencies and the internet. He said that the internet started as an information-sharing network for computer scientists and became the world’s information and commerce hub.
Mirroring the internet’s evolution, he believes cryptocurrencies could adapt to bring solutions to pressing problems such as privacy, but only if U.S. regulators adopt a less stringent form of regulation.
Christopher Giancarlo, who was chairman of the Commodity Futures Trading Commission until he stepped down in July, warned cryptocurrency regulation should not be taken lightly, saying: “Some of the things you learned from your older VCs, this won’t transfer.”
If regulators classified cryptocurrencies as securities, investors like Andreessen Horowitz could face compliance issues or even lose money, according to The Wall Street Journal.
Andreessen Horowitz has also reportedly invested in firms that could grow if crypto regulation were to become more relaxed. Kevin Werbach, a technology scholar at the University of Pennsylvania who attended the conference, said:
“It wasn’t something they did purely out of altruism. … Everyone understands they are investors in the space and have viewpoints about what the regulatory environment should look like.”
In recent regulatory news, authorities in the state of Nevada announced that Bitcoin and cryptocurrency ATMs need a licensing scheme and must conform to existing rules.
After Sudden Slump Last Week, Bitcoin Breaks $10,000 Again
The price of Bitcoin has rallied over the past few days and has again crossed the $10,000 threshold.
On Aug. 28, Bitcoin dropped $600 in the course of a half-hour – sinking below the $10,000 mark before slumping to a weekly low of $9,362 on Aug. 29. The price has slowly recovered since then and is currently trading at $10,099, up 5.21% on the day, according to data from Coin360.
Last week, cryptocurrency investor and Galaxy Digital CEO and founder Michael Novogratz said that Bitcoin was in a consolidation phase, predicting that the impending involvement of institutional investors in the crypto space would fuel the next leg of the bull run. He said:
“Bitcoin started the year at $3,800, traded at $3,500 and now it’s at $10,200 and so it’s up 200% odd percent already. … It has had a huge run, and so I think this is a bit of consolidation.”
Bakkt’s effect on Bitcoin’s price
The long-awaited Bitcoin futures trading platform Bakkt recently announced that it will start accepting deposits for its custodial service Bakkt Warehouse on Sept. 6. The platform itself will launch trading on Sept. 23.
Analysts are uncertain about what Bakkt’s launch could mean for Bitcoin prices. The launch of Bitcoin futures on CBOE and CME precipitated the subsequent crash in early 2018, according to some.
Bakkt’s futures contracts are settled in Bitcoin, meaning that investors will receive BTC in their accounts following settlement rather than dollars.