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…