Changpeng “CZ” Zhao, the co-founder and former CEO of Binance, is optimistic about the future of global crypto regulations ahead of the upcoming United States presidential election.
Cryptocurrency regulations are heading in a promising direction worldwide, Zhao said during his first public speech since his release from prison in the US.
During an Oct. 31 fireside chat at Binance Blockchain Week, CZ said:
“Overall [cryptocurrency regulation] is actually moving in a very positive direction… By June, Donald Trump is pro-crypto. By the end of June, both parties are pro-crypto. I’m still sitting in prison, like what the hell happened?”
Zhao indicated that shifting views on cryptocurrency suggest growing public demand for digital assets but declined to speculate on the potential outcome of the presidential election.
Binance founder, Changpeng Zhao speaks during a fireside chat at Binance Blockchain Week on Oct. 16. Source: Binance
The former CEO of the world’s largest cryptocurrency exchange was released from federal prison on Sept. 27, after serving a four-month stint for Anti-Money Laundering (AML) violations, a spokesperson for the United States Federal Bureau of Prisons told Cointelegraph.
Zhao’s comments come days ahead of the Nov. 5 US presidential elections, which is making crypto a political focal point for the first time in history.
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US political parties urge pro-crypto and stablecoin regulation in open letter
While CZ is optimistic about the future of crypto regulation, others in the industry are concerned.
Paxos CEO Charles Cascarilla penned an open letter to Donald Trump and Kamala Harris, urging the next president to consider favorable stablecoin legislation to maintain the US dollar’s global dominance and improve inefficiencies in the traditional banking system.
Blockchain and stablecoins are “replatforming the financial system” to make it symbiotic with the internet, he wrote in an open letter published on Oct. 29
“Stablecoins or digital dollars—U.S. dollars digitized via blockchain technology—are the crucial upgrade for the payment system that will revolutionize money movement, allow greater participation in the global economy and ensure the supremacy of the U.S. dollar for years to come.”
Stablecoins are needed to improve the global financial system, which is “closed, outdated and inefficient,” according to Cascarilla, who called for innovation-friendly crypto regulations.
Former US President Donald Trump is considered the more crypto- and innovation-friendly candidate, who may promote less restrictive regulations than his opponent, Vice President Kamala Harris.
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Is the US falling behind on crypto regulation?
Developing regulatory frameworks takes more time in larger economies like the US, CZ said during the fireside chat.
Some investors worry, however, that the US is falling behind in crypto regulation compared to the European Union, where the Markets in Crypto-Assets Regulation (MiCA) is set to go into effect at the end of 2024 as the world’s first comprehensive crypto famework.
On the bright side, MiCA could inspire the development of a comprehensive regulatory stablecoin framework worldwide, a Binance spokesperson told Cointelegraph:
“By setting clear rules on issuance, reserve management, and redemption, MiCA enhances market stability and consumer protection, while also fostering innovation through legal certainty.”
Financial institutions, such as the world’s 19th largest bank, Societe Generale, are preparing for the European regulatory framework. The bank has partnered with Bitpanda to launch a MiCA-compliant stablecoin, the euro-denominated EUR CoinVertible (EURCV).
Magazine: CZ walks free, Caroline Ellison receives prison sentence, and more: Hodler’s Digest, Sept. 22 – 28