CZ Says Crypto Bear Market Driven by AI Shift, Geopolitics, and Market Cycle

Binance founder Changpeng Zhao, widely known as CZ, has shared fresh insights into the cryptocurrency market, Binance’s future, and the evolving U.S. regulatory landscape during two recent interviews with CoinDesk.

Although CZ stepped down from leading Binance after pleading guilty to Bank Secrecy Act violations in 2024 and serving a four-month prison sentence, he remains the majority shareholder of both Binance and Binance.US. His influence within the crypto industry also extends through investments in multiple blockchain and technology companies.

Discussing the ongoing crypto bear market in 2026, CZ attributed the downturn to several factors rather than a single event. He pointed to investors shifting capital toward artificial intelligence projects, heightened geopolitical uncertainty, and the traditional four-year cryptocurrency market cycle as the primary reasons behind weaker digital asset prices.

Looking ahead, CZ said he wants Binance.US to strengthen its position by leveraging liquidity from Binance Global, describing deeper collaboration between the two platforms as a way to improve the competitiveness of the U.S. cryptocurrency market. While he remains the largest shareholder, CZ emphasized that he has no intention of returning to manage a crypto exchange on a day-to-day basis. Instead, he prefers serving as an informal adviser to companies within his investment portfolio.

CZ also addressed his recent visit to Washington, D.C., saying his objective was to clear up what he described as misunderstandings surrounding himself and Binance. Despite his guilty plea related to anti-money laundering compliance failures, he maintained that the legal case has not damaged his reputation within the cryptocurrency industry.

Meanwhile, negotiations over U.S. cryptocurrency market structure legislation continue in the Senate. The ethics provision remains the primary obstacle preventing lawmakers from reaching a bipartisan agreement. White House crypto liaison Patrick Witt is reportedly involved in discussions, though any final compromise will require approval from President Donald Trump.

With only about 20 Senate working days remaining before September 1, lawmakers face increasing pressure to advance the crypto market structure bill. Congress has already cleared several legislative priorities, including a housing package containing a temporary prohibition on a U.S. Federal Reserve central bank digital currency (CBDC) and a reconciliation funding measure. However, pending issues such as the reauthorization of the Foreign Intelligence Surveillance Act (FISA), the upcoming farm bill, and the National Defense Authorization Act continue to compete for limited Senate floor time, leaving the future of comprehensive U.S. crypto legislation uncertain.