The U.S. should consider how to regulate crypto, according to Katie Haun, a partner at Andreessen Hoowitz.
"This is a chance for the United States because we should do the exact opposite in this realm of China's doing," Haun, who was formerly a federal prosecutor and now manages Andreessen Horowitz’s crypto investments, stated Wednesday at CNBC’s Delivering Alpha conference.
China's digital currency, called the digital yuan (or digital currency), was created earlier this year. It is currently being managed by the People's Bank of China. It is intended to replace some cash currently in circulation. China has conducted real-world trials of the digital currency in several cities, including Chengdu, Shenzhen and Suzhou.
By design, Bitcoin and other cryptocurrencies are not under the control of a central authority such as a bank or government. Crypto enthusiasts often believe that this is the only way they can trust.
Huan predicted that China would "tie trade and tie loans, tie any assistance to the use essentially their stablecoin," a type digital currency that is often backed with a currency. Many have suggested that the launch of the digital Yuan was linked to Beijing's renewed crackdown on the wider crypto market.
Haun stated that the U.S. has so far taken the right approach to central bank digital currencies (or CBDCs).
She said, "I'm glad that we are studying as a country CBDCs. But we've publicly stated as a nation that we're going continue studying it for a few years." "I believe it's important that policymakers in the U.S. and private industry work together.
Haun also got involved in the U.S. regulatory debate and stated that it was a myth that the crypto industry is opposed to all regulation.
Haun stated, "It's certainly not that the industry doesn't want regulation." It wants clarity but not to be treated like a monolith.
Haun gave an example of non-fungible tokens (or NFTs), which are digital collectibles.
"Why should it be regulated as an investment product or service?" "We don't believe it should be," Haun said, when Haun was asked by a prosecutor to investigate bitcoin. "Regulation can't be applied to all."
Haun stated that she is disappointed that the SEC penalizes crypto companies such as Coinbase for trying to comply. Coinbase, which has Haun on its board, stopped plans to launch a lending product. This was after CEO Brian Armstrong disclosed that Coinbase had received a Wells Notice from the SEC. The SEC threatened to sue if Coinbase continued to offer the product.
Haun stated that certain people in the industry get punished despite their "good faith efforts", while others who skirt regulations and laws "are really getting a pass."
WATCH: Katie from Andreessen Horowitz on China crackdown and new crypto fund
