Binance CEO Calls Regulatory Bias Crypto’s Biggest Risk

Richard Teng says unequal regulatory treatment, rather than quantum computing or market volatility, is the biggest risk to crypto's continued growth. The Binance CEO warned that protectionist rules could deny blockchain companies the level playing field available to traditional financial institutions, slowing services that offer faster settlement, lower costs and broader access.

His broader outlook remains bullish. Teng said institutional onboarding at Binance has increased 9% year to date, while new-user growth is up 7%. He also believes Bitcoin is nearing the bottom of its four-year cycle, noting that roughly 300 days have passed since the all-time high compared with the 360 to 380 days historically associated with a cycle bottom.

Why it matters

Teng views regulatory clarity and institutional adoption as the two conditions required to move crypto beyond its early adopters. He argued that the GENIUS Act encouraged banks and corporate treasuries to embrace stablecoins, which can move funds internationally almost instantly and at a fraction of traditional banking costs.

He expects a US market-structure law such as the Clarity Act to generate a similar spillover. Because the US remains the world's largest economy, clearer rules could push other jurisdictions to introduce competitive licensing and digital-asset frameworks rather than risk falling behind.

That shift is already extending beyond trading. Teng pointed to stablecoins, real-world asset tokenization and plans by major exchanges and financial institutions to place equities and other assets on-chain. He expects blockchain and AI to converge across trading, settlement, custody, accounting and reconciliation, with agentic systems operating around the clock.

Ethereum, Solana and BNB were identified as major networks supporting tokenization and on-chain activity. Teng said he remains optimistic about BNB because builders continue launching products on the network, including infrastructure aimed at AI-assisted trading.

Market impact

Teng expects demand to improve in the second half of 2026 as enthusiasm around AI and semiconductor stocks cools and capital rotates back toward crypto. He said he continues to dollar-cost average into selected assets for long-term holdings rather than attempting to trade short-term price moves.

Europe illustrates the regulatory tension. Teng said 70% of European users who withdrew funds following Binance's EU service suspension moved to self-custodied wallets, while 30% transferred to MiCA-regulated platforms. Binance is continuing to seek a pathway to MiCA licensing.

The bullish case rests on growing utility, institutional participation and clearer rules. The primary downside, in Teng's view, is not a failure of the technology but regulation that shields established financial institutions from faster blockchain-based competitors.