CZ acknowledged that there is a gambling component to prediction markets, but he said that is also true in other financial markets.
“With any financial instrument, there’s always some speculators,” he said. “The speculators actually provide the liquidity, so it’s good that you have that speculation.”
Policy futures
The U.S.’s potential signature crypto policy legislation — the Digital Asset Market Clarity Act (known as the Clarity Act) — may become a law by the end of the year if lawmakers can work out some remaining issues, including an ethics provision for government officials, chiefly the president.
But he said the Clarity Act and other individual bills are “sort of small, tactical things, which are really important, but those are not gonna impact the growth of crypto longer-term.”
Even if the Clarity Act does not become law this year, CZ said he expected the U.S. would continue to take a leading role in crypto regulation, adding that other countries were continuing to introduce their own regulations governing digital assets.
The U.S. would likely still compete with other countries to introduce rules, and it already has the stablecoin-focused Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, he said.
“I, of course, hope to see it get passed, and then every other country will probably copy it to some extent,” he said. “If it gets delayed … other countries may move forward first.”