Changpeng “CZ” Zhao, founder of Binance, said the cryptocurrency market may be entering a "super cycle," arguing this is due to the U.S. government's 180-degree shift in attitude toward regulating digital assets
Zhao's positive outlook on the crypto supercycle trend emerged at a time when the U.S. government has been aggressively dismantling the stringent regulatory framework over the past several years
Reasons behind Binance's founder predicting a major crypto bull run
This new direction has been supported by the recent passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act
The GENIUS Act, signed into law last July, has created the first regulatory framework for government-wide payment stablecoins, resulting in these assets being recognized as a foundation of the U.S. financial system rather than a systemic risk
However, all industry stakeholders are closely watching January 15, when the Senate Banking Committee is scheduled to review the CLARITY Act
If this bill passes, it will end the long-standing jurisdictional dispute between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and require both agencies to jointly establish a unified regulatory framework
Meanwhile, early signs of cooperation between the two agencies have already begun to emerge
Last year, the SEC removed crypto from its 2026 priority enforcement list, signaling a retreat from its 'regulation by enforcement' strategy and a shift of resources toward artificial intelligence and risks posed by third-party service providers
This regulatory clarity has started attracting institutional capital, particularly with spot Bitcoin ETFs raising over $56 billion in new funds since their launch in 2024
Meanwhile, traditional financial institutions such as JPMorgan and Morgan Stanley are actively developing crypto-focused products
Nevertheless, industry analysts have advised caution toward this positive outlook, warning investors that crypto-friendly legislation alone cannot guarantee a straight-line growth trajectory
If you think a supercycle will happen just because of this tweet, you're going to be greatly disappointed. Lower your expectations, because it's possible nothing will happen at all next year. That's actually good news, as it gives you more opportunity to accumulate. Rajat Soni, a traditional financial analyst, said
Zhao from Binance has also tempered expectations regarding this crypto's major bull run, emphasizing that he cannot predict the future