Changpeng “CZ” Zhao, the co-founder and former CEO of Binance, remains optimistic about cryptocurrency regulation, thus stating the positive tendency worldwide. During a fireside chat conducted on October 31st in the framework of Binance Blockchain Week, CZ also commented on the changes in the approach of the states to the regulation of the industry with reference to the opportunities it can open.
CZ’s comments, his first time making a public statement since he was released from a U.S. federal prison, come only days before the November 5 U.S. presidential election. Though he did not dare to speak about the election results, CZ noted the growth of public attention to cryptocurrencies as a factor that could impact politicians’ attitudes towards digital assets. “The direction is very positive,” he said, including the steadily increasing awareness of modern digital currencies such as Bitcoin.
In the period leading up to the U.S. election, U.S. citizens woke up to massive debates on crypto, and the political parties are fully aware that the space needs rules. According to the industry giants, current policies are an issue, and there is a call for the proper regulations to foster stablecoins and blockchain-based financial systems.
Binance Founder Highlights Global Implications of US Regulatory Lag in Crypto
Paxos CEO Charles Cascarilla, in an open letter to former President Donald Trump and Vice President Kamala Harris, used the invitation to the next administration to adopt stable coin regulation legislation. At Cascarilla, he noted that stablecoins can help the US Dollar regain its leading position and improve traditional finance, which he called ‘closed, outdated, inefficient.’ As quoted by Cascarilla, the stablecoins could “re-platform the financial system”, meaning that the financial system will sync with the digital economy much better.
Experts consider Trump more friendly to cryptocurrency, and his administration would be less likely to impose strict measures. It is important to note, however, that Harris has not been as vocal on crypto as some of her colleagues. Still, she has shown some understanding of the imperative of scaling financial technology.
CZ also pointed out that though big economies such as the USA may take years to establish regulatory requirements, this may have broader implications for the world economy. However, certain industry circles are concerned that the US lags behind regions such as the European Union, which has already formed the MiCA Markets in Crypto-Assets Regulation, which is planned to come into force at the end of 2024.
‘MiCA could potentially act as the blueprint for a global approach to regulating stablecoins’, a Binance spokesperson said, explaining how Europe’s approach may prompt other regions to take the same path. However, some of the world’s leading financial institutions, including Societe Generale of France, are already in the process of adopting the MiCA, having collaborated with Bitpanda to issue a MiCA-compliant EUR CoinVertible (EURCV) euro-backed stablecoin.
Zhao’s positivism underlines an industry that so many wish for a proper raison d’être, whereby a more balanced approach of regulation exists that’ll spur increased innovation, yet, at the same time, there be an assurance of the devised security measures’ effectiveness and the resultant transparency. So, as long as cryptos get more social and especially political acceptance, their worldwide legal systems could come into existence, setting the foundational ground for unified, stronger, and less volatile digital financial systems.
Another part of the regulatory focus may determine how digital assets are integrated into legacy financial systems globally, with the U.S. election and the implementation of MiCA being the two key factors.
