CZ acknowledged that there is a gambling component to prediction markets, but he said it is also the case in other financial markets.
“With any financial instrument, there are always some speculators,” he said. “The speculators actually provide the liquidity, so it’s good that you have that speculation.”
Politics future
The US’s potential signature crypto-policy legislation – the Digital Asset Market Clarity Act (known as the Clarity Act) – could become law by the end of the year if lawmakers can resolve some remaining issues, including an ethics provision for government officials, primarily the president.
But he said the Clarity Act and other individual bills are “kind of small, tactical things that are really important, but they’re not going to affect the growth of crypto in the long term.”
Even if the Clarity Act does not become law this year, CZ said he expected the US to continue to play a leading role in crypto regulation, adding that other countries continued to introduce their own rules for digital assets.
The US will likely still compete with other countries to enact regulations, and it already has the stablecoin-focused Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, he said.
“Obviously I hope to see it passed and then every other country will probably copy it to some extent,” he said. “If it is delayed… other countries may move forward first.”
