The regulatory environment in the U.S. doesn’t look good for crypto but the United States has the potential to lead again, according to Binance CEO Changpeng Zhao (CZ). The founder of the world’s largest digital asset exchange is convinced stablecoins can increase use cases for the U.S. dollar and praises the pro-crypto stance of Republican presidential hopeful Ron DeSantis.
CZ: Lack of Clarity and Regulation by Enforcement Mark Current Regulatory Landscape in U.S.
founder and chief executive, Changpeng Zhao, gave his thoughts on the crypto regulatory situation in the United States in an Ask Me Anything session on Twitter this past Wednesday. He was asked to comment in light of the 2024 U.S. presidential election and the statements of some of the candidates on cryptocurrency and regulations.
CZ said that his outlook on the current regulatory environment in the U.S. is not positive from crypto’s perspective. “I think there’s a lack of clarity and there are clear cases of regulation by enforcement of which we are a recipient of, in at least one case. So, it’s just not good,” he stated.
“U.S. has pros and cons. U.S. is a democracy, it’s got the foundations, freedom of speech … So it’s strong in many points. But the U.S. also has some disadvantages when it comes to crypto adoption,” the entrepreneur elaborated.
Zhao noted that the U.S. dollar is the global dominant currency which is a very powerful tool for the United States. He added that some people in the country believe that no one can do anything that would even hint at undermining that power.
“But then there’s a different group of guys, who are innovators, who say the best way to enhance the dominance of that [the dollar] is to embrace crypto,” the founder of the world’s largest cryptocurrency exchange pointed out and suggested:
If we increase the U.S. dollar-based stablecoins, that further strengthens the U.S. dollar being used in more places. If we limit that, it reduces the use cases for the U.S. dollars globally, at least in the crypto communities.
Zhao Praises ‘Great’ Florida Governor, ‘Fantastic’ Miami Mayor
CZ admitted he is too busy to regularly follow U.S. politics but praised Florida Governor Ron DeSantis for his stance on crypto assets. “He is very pro-crypto, so I think he is great,” Zhao said. He listed other U.S. officials in that category such as “fantastic” Miami Mayor Francis Suarez and Commissioner on the Securities and Exchange Commission (SEC), “crypto mom,” Hester Peirce.
While currently the “U.S. doesn’t look positive to crypto,” with its “chaotic environment,” the collapse of three crypto-friendly banks, and lawsuits involving a number of leading crypto companies, the CEO of Binance is convinced that the United States has the potential to become a leader again, when the regulatory landscape becomes more favorable.
Changpeng Zhao’s comments on the regulatory challenges for the crypto industry in the world’s leading economy come after he recently addressed the problems with banking that his and other companies in the sector are currently facing around the world.
Do you expect the regulatory climate in the U.S. to change positively for the crypto space in the future? Tell us in the comments section below.