Binance founder Changpeng 'CZ' Zhao said the cryptocurrency market may enter a 'supercycle.' He attributed this shift to a 180-degree turnaround in Washington's regulatory stance toward digital assets.
A rapid forecast of the cryptocurrency supercycle after Zhao appears as the U.S. government aggressively dismantles the legal enforcement frameworks from previous years.
Why does the Binance founder predict a cryptocurrency supercycle?
The cryptocurrency supercycle is expected to emerge due to the recent GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins).
The GENIUS Act, signed in July last year, established the first federal framework for stablecoin payments. This effectively legitimizes these assets as a cornerstone of the American financial system, rather than a systemic risk.
However, the industry's eyes are now focused on January 15, when the Senate Banking Committee is set to review the CLARITY Act.
If passed, the bill would end the long-standing jurisdictional battle between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It would require both agencies to collaborate on a unified compliance framework.
Meanwhile, signs of this new collaboration between agencies are already emerging. Last year, the SEC removed cryptocurrencies from its 2026 examination priority list, signaling a shift away from the 'regulation through enforcement' strategy. Instead, the agency is redirecting resources toward artificial intelligence and risks associated with external vendors.
This regulatory clarity is already unlocking institutional capital. Note that Bitcoin ETFs have attracted over $56 billion in new capital since their launch in 2024.
At the same time, traditional financial institutions such as JPMorgan and Morgan Stanley are actively developing products focused on cryptocurrencies.
However, industry analysts caution against over-optimism regarding these forecasts. They remind investors that pro-crypto legislation alone cannot guarantee linear growth. Rajat Soni, a traditional financial analyst, said:
"If you think a supercycle is coming due to this tweet, you'll be very disappointed. Lower your expectations. It's possible that absolutely nothing will happen next year. And that would be a good thing, as it would mean you could stack more."
Binance's founder has also tempered expectations regarding this crypto supercycle, noting that "he cannot predict the future."
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