a16z executive highlights for developers: Don't rush to build exchanges, a new era of regulation is beginning

【Crypto World】Two senior executives from a16z Crypto recently issued a warning to crypto developers.

Partner Arianna Simpson pointed out a phenomenon: besides stablecoins and underlying infrastructure, most successful crypto companies are now clustering around trading platforms. It sounds good, but the problem is—this homogeneous competition is too fierce. As a result, most companies’ attention is severely divided, and only a few true winners will survive in the end.

Simpson’s advice is straightforward: founders rushing to shift into trading businesses may be missing a bigger opportunity—the development of truly defensive, long-lasting businesses. In other words, developers who focus on refining the product itself rather than simply piling on trading features might become the final winners. This logic is somewhat counterintuitive, but in a highly competitive market, it is often correct.

On the other hand, Miles Jennings, the policy team lead and chief legal counsel at a16z Crypto, is focusing on regulation. He emphasizes that developers must prioritize regulatory compliance. More importantly, the Trump administration is closer than ever to passing the crypto market structure regulation bill. If this bill is enacted, what will be the impact? It will incentivize transparency, establish clear standards, create a straightforward path for fundraising and token issuance, and lay a solid foundation for the development of decentralized applications. In other words, this could be the long-awaited policy-friendly window that the crypto industry has been hoping for.