Regulation
a16z Co-Founders Back Trump, Citing Cryptocurrency and AI Policy Concerns
Screenshot from a16z’s “The Little Tech Agenda: Biden vs. Trump” podcast.
Key points
- a16z founders support Trump for his pro-cryptocurrency policies.
- The Republican tech policy platform for 2024 promises to end the crackdown on cryptocurrencies.
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Marc Andreessen and Ben Horowitz, co-founders of leading venture capital firm Andreessen Horowitz (a16z), have announced their support for Donald Trump in the 2024 presidential race, citing concerns about the impact of cryptocurrency and artificial intelligence policies on innovation and the broader startup ecosystem.
In a podcast published Tuesday, Andreessen and Horowitz explained their decision to back Trump over incumbent President Joe Biden. Venture capitalists have stressed that their choice stems primarily from concerns about the future of technology, particularly for smaller startups and emerging sectors like cryptocurrencies and artificial intelligence.
“The future of our business, the future of technology, new technologies and the future of America are literally at stake,” Horowitz said.
The co-founders of a16z have argued that the Biden administration’s policies, particularly those related to cryptocurrency regulation, have been overly restrictive and detrimental to the growth of the tech sector.
“I wish we didn’t have to take sides,” said Horowitz, who acknowledged that such a decision would likely upset his friends and colleagues, and even his family. Horowitz has been a Democrat most of his life, voting for Bill Clinton, Al Gore, John Kerry, Barack Obama and Hillary Clinton.
Andreessen stressed the Republican Party’s explicit commitment cryptocurrency support in their 2024 policy platform, which promises to “end the illegal, anti-American crackdown on cryptocurrencies.” He described this as “a complete and total endorsement of the entire space,” expressing surprise at the level of support.
The endorsement from venture capitalists is in line with a growing trend of Tech Figures Back Trump’s Re-Election offering. Tesla CEO Elon Musk has reportedly pledged to donate about $45 million a month to a pro-Trump super PAC. Cryptocurrency industry leaders, including Tyler and Cameron Winklevoss, have also pledged their support.
Trump, survivor of a attempted murder last weekend, he recently said in an interview with Bloomberg that US must be a leader in cryptocurrency or risk China overtaking it in terms of technology.
Andreessen and Horowitz specifically criticized the SEC under Biden-appointed chairman Gary Gensler, citing numerous enforcement actions against their portfolio companies.
“They’ve sued, I think, over 30 of our companies,” Horowitz said, describing the situation as “terribly frustrating and hard on us and the industry.”
The founders of a16z have expressed concern that the regulatory approach to cryptocurrencies could foreshadow a similar treatment for artificial intelligence, another area in which their company has invested heavily.
“My big concern is that what we’ve seen in cryptocurrency is just a preview of what’s to come in artificial intelligence,” Horowitz explained.
This approval comes at a time of growing tensions between the tech industry and government regulators. The recent veto of a pro-crypto bill and proposals to close tax loopholes for cryptocurrency traders have further strained relations with the industry. The choice made by Andreessen and Horowitz reflects broader concerns within the tech sector about the impact of regulatory policies on innovation and growth.
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