Ben Horowitz: 'The Biden Regulators Lied About Crypto'

Prominent investors Ben Horowitz and Marc Andreessen sharply criticized the Biden administration’s regulatory approach to crypto, accusing federal regulators of lying about consumer protection motives while enabling damaging market practices.

What Happened: In a conversation on the Ben & Marc show, Horowitz stated, "The Biden regulators lied about crypto and said, ‘we have to protect consumers,' but as they were terrorizing every compliant and legal company, they let all the crazy fly-by-night meme coins and scams run, because they wanted to destroy the industry and destroy trust in the markets."

Horowitz’s comments reflect widespread frustration in the crypto industry regarding uneven regulatory enforcement, which critics argue has hampered legitimate crypto businesses while leaving volatile and questionable projects unchecked.

The regulatory landscape, especially in the U.S., has been marked by high-profile lawsuits and fines, targeting major crypto exchanges and compliant firms under the guise of protecting consumers.

Also Read: Bitcoin Stays Above $91,000—But One Technical Indicator Spells Trouble

Andreessen amplified Horowitz's remarks, comparing the situation to “anarcho-tyranny,” a political theory describing a situation where lawbreakers operate unchecked while law-abiding citizens or businesses face undue restrictions.

He likened the crypto regulatory environment to challenges in U.S. cities like San Francisco, stating, "If you're a violent drug addict you can have free reign on the streets, and if you want to open an ice cream parlor, God help you."

Both Horowitz and Andreessen highlighted how this approach, ostensibly aimed at protecting consumers, has instead contributed to widespread uncertainty and a loss of public trust.

With compliant crypto firms under heavy regulatory scrutiny, these investors argue that the administration’s policy may be working against its stated goals, possibly driving innovation out of the country.

The upcoming Benzinga Future of Digital Assets event on Nov. 19 will further explore the impact of policy on innovation, regulation and investor confidence in crypto.

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