Weighing in on tech regulation from Recode's Code Conference on Wednesday, Zillow CEO Spencer Rascoff rushed to Facebook's defense. He said the social network shows evidence of a "cultural shift," and executives are now more wary of the negative potential of their platform.

In an interview on Tuesday with Recode's Kara Swisher, Facebook COO Sheryl Sandberg said she and other Facebook leaders "didn't see coming a different kind of more insidious threat, but once we saw it, we did publish a white paper" and made some changes. Rascoff felt the interview was evidence of a pivot in thought by leadership at Facebook.

"More important than actual regulation will be that companies take seriously the impact of their platform – and yes, I do think Facebook has realized that," Rascoff said on Wednesday.

"I really think that the cultural shift they talked about yesterday is real. You can see it in Sheryl's eyes," he added on CNBC's "Squawk Alley."