The founders of a16z, one of the most deep-pocketed venture capital firms in the US, endorsed former President Donald Trump on Tuesday. Marc Andreessen and Ben Horowitz cited Trump's favorable stance on crypto as a significant reason for their support.

A Critical Decision

"The future of our business, the future of technology, new technology and the future of America is literally at stake," said Horowitz at the beginning of a podcast released on Tuesday.

Their support comes as other tech luminaries line up to back Trump's second reelection bid. President Joe Biden's administration has taken a highly critical stance on crypto. Recently, Biden vetoed a pro-crypto bill and proposed closing a tax loophole for crypto traders.

Gary Gensler, the Securities and Exchange Commission chair appointed by Biden, has cemented a reputation as a crypto boogeyman as his agency has fired off a barrage of enforcement actions against the industry. Crypto champions hope a Trump administration will prove friendlier and bring a new chair at the helm of the SEC.

Support for 'Little Tech'

Andreessen and Horowitz emphasized how Trump's presidency could benefit smaller startups, not just big tech giants like Google and Meta.

"For little tech, we think Donald Trump is actually the right choice," said Horowitz. "Sorry mum, I know you're going to be mad at me for this, but we had to do it."

The two a16z founders said the Biden administration's policies inhibit the growth of the US tech industry. Specifically, they view the current administration's crackdown on the crypto industry as evidence of its restrictive stance on tech.

"They've sued, I think, over 30 of our companies," Horowitz said of the US Securities and Exchange Commission, adding later: "It's just been really terribly frustrating and hard for us and for the industry."

The AI Connection

While crypto remains a focal point, artificial intelligence is the new buzzword in tech. a16z has invested significant cash into AI, including stakes in industry luminaries like OpenAI and Mistral.

"My big concern is what we saw in crypto was the foreshadowing of what's gonna happen in AI," Horowitz stated. This concern drives their endorsement of Trump and the Republican Party's vocal support for crypto.

The Republican Platform

"We will end the unlawful and un-American crypto crackdown," wrote Republicans in their recently released policy platform for the 2024 elections.

Andreessen said the platform's explicit mention of crypto surprised him. "It's a flat-out blanket endorsement of the entire space," he added.