Key Highlights
- Changpeng Zhao urged more competition to strengthen the U.S. crypto market.
- He argued that limited rivalry leads to higher trading fees and weaker liquidity for users.
- Zhao said talent and firms may return to the U.S. if policy support and openness continue.
Binance co-founder Changpeng Zhao (CZ) called for greater market competition to strengthen the U.S. digital asset sector.
Speaking at the DC Blockchain Summit on Wednesday, his central argument was that open rivalry among platforms, rather than restrictive oversight alone, produces better outcomes for consumers.
He added, “I think what the U.S. needs today is probably, I’ll be very direct, a bit more competition. I think U.S. is founded on the concept of capitalism, which is free market, free competition. I’ve been talking to some fairly important people in the U.S. and fairly influential, smart people. Competition is the best consumer protection.”
According to Zhao, competition drives lower costs, better services, and deeper liquidity, factors he believes are currently uneven in the American crypto market.
Talent may be returning to the U.S.
Zhao said earlier regulatory pressure had pushed many crypto entrepreneurs and startups overseas, particularly to hubs such as the UAE, Singapore, and Hong Kong.
Recently, however, he has observed signs that developers and companies are beginning to return, citing improved policy signals and the country’s long-standing advantages in venture capital, financial expertise, and technological innovation.
He noted that the U.S. still possesses unmatched institutional capital and established financial infrastructure, which could support renewed growth if conditions remain favorable.
High fees signal weak competition
From an exchange operator’s perspective, Zhao argued that U.S. trading fees remain significantly higher than those available in international markets. He said higher costs indicate limited competition and result in less favorable pricing for retail investors.
He also suggested that global crypto liquidity, the pool of capital available for trading, is no longer centered in the United States, an unusual situation compared with traditional asset classes such as equities or foreign exchange, where U.S. markets dominate.
Liquidity gap compared with traditional markets
Zhao described the absence of a major U.S. liquidity hub in crypto as an anomaly. In conventional finance, American markets typically host the deepest trading pools, attracting participants worldwide. In digital assets, however, substantial activity has migrated to offshore platforms.
He argued that with sufficient competition and supportive conditions, the U.S. could quickly reclaim that position due to its large base of institutional investors.
Positive regulatory moves
Despite his concerns, Zhao said recent policy developments have been more supportive of crypto than he previously expected. He suggested that regulatory clarity combined with market openness could enable the U.S. to reestablish itself as a leading center for digital asset trading and innovation.
Competition shapes pricing, liquidity, and innovation, the features that determine whether a financial market attracts global participants. If Zhao’s assessment is accurate, increasing rivalry among U.S. platforms could lower costs for investors and draw trading activity back onshore.
Also Read: DC Summit: Lawmaker Presses Senate to Move on Crypto Clarity Bill
