Binance founder Changpeng 'CZ' Zhao has stated that the cryptocurrency market could enter a 'super cycle.' He attributes this shift to a 180-degree change in the regulatory attitude toward digital assets in Washington, D.C.
Julia13: The bullish market outlook for the super cycle by Zhao comes at a time when the U.S. government is actively dismantling the hardline enforcement framework it has maintained over the past few years.
Binance founder, reasons for the cryptocurrency super cycle outlook
This shift in direction has been driven by the recent passage of the U.S. stablecoin (GENIUS) law.
The GENIUS Act, signed in July and now in effect, established the first federal standards for payment-oriented stablecoins. As a result, these assets have been officially recognized as core components of the U.S. financial system, emphasizing that they are not systemically risky.
Meanwhile, the industry is closely watching the U.S. Senate Banking Committee's upcoming review of the CLARITY Act on January 15.
If passed, it would end the long-standing jurisdictional dispute between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Both agencies would be required to collaborate toward a single compliance framework.
Signs of such regulatory cooperation are already emerging in various corners of the industry.
Last year, the SEC removed cryptocurrencies from its 2026 enforcement priority list. This signals a retreat from an enforcement-focused regulatory strategy. Instead, the agency is now focusing its resources on artificial intelligence and managing risks from external vendors.
Such regulatory clarifications are also attracting institutional investment capital. In particular, Bitcoin spot ETFs have attracted over $5.6 billion in new funds since their launch in 2024.
Meanwhile, traditional financial institutions such as JPMorgan and Morgan Stanley are actively engaging in developing cryptocurrency-centric products.
However, industry experts have urged caution regarding these bullish outlooks, reminding investors that cryptocurrency-friendly legislation does not guarantee linear growth.
'If you think this tweet means the supercycle is coming, you're in for a big disappointment. Lower your expectations. There's a good chance nothing will happen over the next year. Actually, that's a good thing—you'll have more time to accumulate.' – Traditional finance analyst Rajaat Sony
Binance's Zhao has also tempered expectations regarding this supercycle, stating, 'The future cannot be predicted.'
