Binance founder Changpeng “CZ” Zhao stated that cryptocurrency markets may be entering a "super-cycle." He linked the change to Washington's 180-degree turn in regulating digital assets.
Zhao's bold prediction about the crypto super-cycle comes at a time when the U.S. administration is dismantling the heavily regulated framework that has governed digital assets for previous years.
Why Binance Founder Predicted the Crypto Currency Super Cycle Phase
The shift is based on the recently passed Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act.
The GENIUS Act, signed into law last July, established the first federal-level regulatory framework for stablecoins. This means these assets are now recognized as part of the U.S. financial system, no longer just seen as systemic risks.
Attention is now turning to January 15, when the Senate Banking Committee is scheduled to consider the CLARITY Act.
If the bill passes, it would end the long-standing jurisdictional dispute between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). After that, both agencies would need to work together to establish a unified regulatory framework.
Meanwhile, signs of this new regulatory cooperation are already becoming visible.
Last year, the SEC removed cryptocurrencies from its 2026 examination priority list, signaling a move away from the "regulation by enforcement" approach. The agency is now focusing its resources on artificial intelligence and risks associated with third-party service providers.
The current regulatory clarity has already unlocked institutional capital. In particular, spot Bitcoin ETFs have raised over $56 billion in new capital since 2024.
At the same time, traditional financial institutions such as JPMorgan and Morgan Stanley are actively developing crypto-focused products.
Analysts, however, caution against overconfidence in these bulls' forecasts. They remind us that merely crypto-friendly legislation does not guarantee steady growth.
"If you believe the super-cycle is coming because of this tweet, you'll be greatly disappointed. Lower your expectations. It's possible nothing will happen at all in the next year. In fact, that would actually be good, as it would allow you to accumulate more," said Rajat Soni, a veteran financial analyst.
Binance's Zhao also tempered expectations around the crypto super-cycle by stating, "I can't predict the future."