Changpeng Zhao characterizes the industry’s “very favorable trajectory” as the result of governmental support for cryptocurrencies and changes in crypto regulations.
Changpeng “CZ” Zhao, the former CEO and co-founder of Binance, has expressed optimism regarding the future of cryptocurrency regulation on a global scale, notably in anticipation of the forthcoming U.S. presidential election.
During a fireside conversation at Binance Blockchain Week on October 31, Zhao delivered his first public address since his release from prison. He expressed his opinions as follows:
“Overall, the regulation of cryptocurrency is genuinely progressing in a very positive trajectory…Donald Trump is pro-crypto by June. Both parties are in favor of cryptocurrency by the conclusion of June. I am still in prison, and I am wondering, What the devil happened?”
Zhao proposed that the changing perspectives on crypto indicate a growing public interest in digital assets, although he refrained from making predictions regarding the election’s outcome.
Zhao’s comments, which coincide with the Nov. 5 U.S. presidential election, are the first time that cryptocurrency has become a central issue in the campaign. Zhao was released on Sept. 27 after serving four months in a U.S. federal prison for Anti-Money Laundering (AML) violations.
Although Zhao is optimistic, there are those in the crypto community who have expressed apprehension. In an open letter to Donald Trump and Kamala Harris, Charles Cascarilla, CEO of Paxos, urged the next U.S. president to endorse stablecoin regulation in order to resolve inefficiencies in the current banking system and strengthen the dollar’s global status.
According to Cascarilla’s open letter on October 29, blockchain and stablecoins are “replatforming the financial system” to conform to the digital time:
“Stablecoins or digital dollars—U.S. dollars that have been digitized using blockchain technology—are the essential upgrade to the payment system that will revolutionize money movement, enable greater participation in the global economy, and guarantee the U.S. dollar’s supremacy for years to come.”
He underscored the importance of stablecoins in the process of modernizing the financial system, which he characterized as “closed, outmoded, and inefficient.” He also advocated for crypto policies that are conducive to innovation.
In comparison to his opponent, Vice President Kamala Harris, former President Donald Trump is perceived as more supportive of innovation and crypto, potentially favoring a less restrictive regulatory stance.
Zhao acknowledged during the fireside conversation that the process of constructing regulatory frameworks in large economies such as the United States can be delayed.
Nevertheless, certain investors are concerned that the United States may be lagging behind in terms of crypto regulation, particularly in light of the European Union’s Markets in Crypto-Assets Regulation (MiCA), which is scheduled to be implemented by the end of 2024. MiCA is the world’s first comprehensive crypto framework.
According to a spokesperson for Binance, MiCA could potentially facilitate the establishment of a global stablecoin regulatory framework.
“MICA promotes innovation through legal certainty and enhances market stability and consumer protection by establishing specific regulations on issuance, reserve management, and redemption.”
In anticipation of the regulatory transition in Europe, financial institutions such as Societe Generale, the 19th largest bank in the world, have collaborated with Bitpanda to introduce a stablecoin that is MiCA-compliant: the euro-backed EUR CoinVertible (EURCV).
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