Binance founder Changpeng 'CZ' Zhao says the crypto market could enter a 'super cycle.' He attributes this development to the 180-degree shift in Washington's regulatory stance toward digital assets.
Zhao's bullish super cycle prediction for crypto comes as U.S. authorities are now actively dismantling the enforcement-focused framework from previous years.
Why Binance's founder predicted a crypto 'super cycle'
The point of sale is anchored in the recent passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.
The GENIUS Act, signed in July last year, established the first federal framework for payment stablecoins. This legitimizes these assets as a foundational pillar in the U.S. financial system rather than viewing them as a systemic risk.
The industry is now turning its attention to January 15, when the Senate Banking Committee is set to review the CLARITY Act.
If passed, the bill would put an end to the prolonged jurisdictional battle between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It would require the two agencies to collaborate on a unified compliance regime.
In the meantime, signs of this new inter-agency collaboration are already beginning to emerge.
Last year, the SEC removed crypto from its priority list for investigations in 2026, signaling a retreat from its 'regulation through enforcement' strategy. Instead, the agency has reallocated its resources toward artificial intelligence and risks from third-party vendors.
This regulatory clarity is already opening the door for institutional capital. For instance, spot Bitcoin ETFs have attracted over $56 billion in new capital since their launch in 2024.
Meanwhile, traditional financial institutions such as JPMorgan and Morgan Stanley are already working on developing crypto-focused products.
Nevertheless, market analysts are urging caution regarding these bullish predictions. They remind investors that pro-crypto legislation alone cannot guarantee steady growth.
"If you think there will be a super cycle because of this tweet, you'll be very disappointed. Adjust your expectations. It's possible absolutely nothing will happen over the next year. And that would be good, because then you get to accumulate more," said Rajat Soni, a traditional financial analyst.
Binance's Zhao has also tempered expectations around this crypto super cycle, noting that he "cannot predict the future."