CZ acknowledged that there is a gambling component to prediction markets, but he said this is also true in other financial markets.
“With any financial instrument, there are always speculators,” he said. “The speculators actually provide the liquidity, so it’s good that you have that speculation.”
Future Policies
Potential U.S. 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 won’t impact the growth of crypto in the long term.”
Even if the Clarity Act is not passed this year, CZ said he expects the United States to continue to play a leading role in crypto regulation, adding that other countries continue to introduce their own regulations governing digital assets.
The United States would likely still compete with other countries to introduce rules, and it already has the GENIUS (Guiding and establishing National Innovation for US Stablecoins) Act, focused on stablecoins, he said.
“I certainly hope it gets adopted, and then all the other countries will probably copy it to some extent,” he said. “If this is delayed… other countries may move forward first.”
