Dialogue with the person in charge of government affairs of a16z: a16z will shoulder an important role in promoting the encryption legislation in the United States

Original compilation: PANews, Jordan

Original compilation: PANews, Jordan

In early November, a16z Crypto announced Collin McCune as the head of government affairs. He was the deputy staff director of Patrick McHenry, a member of the US House of Representatives Financial Services Committee, and has extensive network resources in Washington.

In fact, CollinMcCune's choice to enter the crypto industry at this time is a bit surprising, because the aftermath of FTX's bankruptcy is not over, and many people are fleeing the bear market. Although a16z has no direct contact with FTX, the venture capital giant has not escaped the impact of the encryption winter. Compared with the first half of 2022, the value of a16z's encryption fund has lost 40%. However, unlike other encryption funds, a16z has strong funds. Most of the funds in the previously launched $4.5 billion encryption fund "Crypto fund 4" have not yet been deployed. Incorporated under its command, a16z will take on a more important role-promoting US encryption legislation.

Fortune: The U.S. House of Representatives and Senators held two hearings on FTX this week. What did you take away?

Collin McCune：Clearly, things are going badly for FTX and the crypto industry has had to rebuild trust. But I think there is one thing that needs attention. From various related reports, and from the testimony of FTX’s current CEO John Ray in the House of Representatives, it can be seen that FTX is not a common phenomenon in the encryption industry, but a typical case of fraud.

In general, the consensus reached by the Democratic Party and the Republican Party in the United States is that it is necessary to clarify encryption regulation and regulatory guidance to protect ordinary investors, and to provide more accurate regulatory direction for companies that want to provide encryption services in a compliant manner, but at the same time It also means that a lot of education and training work is required. While some legislators have made up their minds, blockchain and cryptography take time to understand, and it is easy to verbally condemn FTX itself, but it is much more difficult to learn and understand this emerging technology, so it is a very complicated issue. This hearing is to find out what happened to FTX and try to protect consumers, but the point is that lawmakers need to learn to understand blockchain and encryption technology to know how to implement protection measures in the future.

Fortune: You previously posted on social media that FTX was not a technical failure, but a case of fraud. At the same time, lawmakers expressed a lot of skepticism during the two hearings. It is difficult for the crypto industry to break free from its association with FTX. For many, the former SBF could almost be said to be the voice of cryptocurrency in Washington, how to convince lawmakers that the SBF is just an exception?

Collin McCune：This will be a challenge, and the crypto industry has to go, but in fact, the bankruptcy of FTX made lawmakers realize that cryptocurrency is no longer an "elective course", but a problem that must be solved, and they have to start discussions on crypto legislation. Once legislation is on the agenda, a16z, and the broader cryptocurrency advocates, will need to be actively engaged to push legislators to understand the technical differences and ensure that the crypto industry gets the right legislation.

"Fortune": Almost every lawmaker now says that the encryption industry needs regulation, but there are differences on the form of regulation, which means that a new bill that specifically targets cryptocurrencies may not be introduced, but implemented within the existing framework Supervision. How do you feel about narrowing down the broader regulatory needs to something lawmakers can realistically agree to?

Collin McCune：Over the past two years, lawmakers have put forward a number of high-quality proposals, everything from market structure bills to stablecoins and the like. The details make the difference, and if progress can be made on things with broad consensus (I think there is), it will undoubtedly lead to encryption legislation. But legislation itself is not an easy task. Promoting legislation cannot rely on internal circles, but requires external forces. a16z hopes to accompany the implementation and changes of encryption legislation.

Fortune: When you say external forces, do you mean people like you from a16 z?

Collin McCune：There is a wider crypto community besides us, it is very important that people hear the voice of the Web3 industry, the crypto community needs to let local lawmakers know that they are creating new things, and of course hope that a16z can be a part of this puzzle.

Fortune: Will FTX Bankruptcy Boost the Speed ​​of Crypto Legislation? What types of regulation will there be in the future?

Collin McCune：Encryption legislation is now a top concern for policymakers, and overall, this is a positive sign. But more importantly, the crypto industry needs to continue to work with policymakers to ensure that policies do not stifle innovation and the future of Web3 while protecting consumers.

The bankruptcy of FTX is indeed tragic, but it should be noted that the failure of FTX is not the failure of Web3, but highlights the importance of transparently putting information such as transactions on the blockchain, so as not to rely on a centralized participants to make decisions.

FORTUNE: Now that a16z is in his new role, do you have any message for how a16z portfolio companies should approach lawmakers?

Collin McCune：People who don't know the background of Washington are usually afraid of the so-called "Washington culture" because they always worry that they say the wrong thing, and I always encourage crypto practitioners to get out and talk to lawmakers, they are actually very willing to hear some cool things new things, and also want to understand how these new things can improve the lives of ordinary people.

But in the technical field, especially when some complex issues are involved, you need to find a "bridge", because the legislators may not have enough encryption knowledge, otherwise the two parties will be communicating in different languages. In fact, a more successful way of communication is to start from games and NFT, and legislators generally have a better understanding of these two fields.

"Fortune": Obviously, in terms of encryption, due to some regulatory uncertainties around securities and other topics, a16z's own interests have been damaged. As the person in charge of government affairs, what priorities will a16z do in the future?

Collin McCune：Web3 is at a pivotal moment, the past few months have been really difficult, a16z's main focus at this stage is to focus on a large number of Web3 projects that optimize the Internet, and I will serve as a bridge between the Web3 community and Washington DC.

Fortune: Can you be more specific?

Collin McCune：a16z has a high reputation in the Web3 community, and now a16z is going to expand this influence to Washington, which will help build an encryption alliance from outside the legislative layer and make it easier for lawmakers to understand some complex issues. On the other hand, core members of a16z will communicate effectively with lawmakers on a regular basis. In the future, there will be a very strong Web3 community in Washington, D.C., and a16z is part of this puzzle, because a16z has unique advantages, a large number of technical experts, and can explain all kinds of content that needs to be explained.