• Wed. Jun 22nd, 2022

Elon Musk wants US regulators to just let cryptocurrencies fly

Tesla CEO Elon Musk. Patrick Pleul / Pool via Reuters

  • The US government should “do nothing” to regulate cryptocurrencies, Elon Musk said on Tuesday.

  • “I don’t think it’s like the second coming of the Messiah, which some people seem to think,” he said.

  • China has banned crypto because the country dislikes their goal of reducing the power of centralization, he said.

  • Sign up for our daily newsletter here, 10 things before the opening bell.

Elon Musk said he believes U.S. officials should refrain from regulating cryptocurrencies because their intervention could dampen growth.

“It is not possible, I think, to destroy crypto, but it is possible for governments to slow down its progress,” he said. in an interview at the Code Conference in Los Angeles on Tuesday.

New York Times columnist Kara Swisher asked Musk what the U.S. government should do to regulate the industry.

“I would say, don’t do anything,” he said, adding, “Just let it fly.”

Gary Gensler, chairman of the Securities and Exchange Commission, called for greater oversight of the “Wild West” market for digital assets, saying unless crypto exchanges are regulated, they risk losing the trust of the public.

And unlike Musk, some leaders in the crypto industry believe that more rigorous scrutiny will be an advantage by providing investors with more clarity and protection. Coinbase is prepare to pitch a regulatory framework to the authorities, while billionaire investor Mark Cuban admitted that crypto regulation built around existing fraud laws is not a bad thing.

Musk, which co-founder of the payment service provider PayPal in 1999, told Swisher he hopes cryptocurrencies will reduce “errors and latency” in the established financial system. But he was measured in his hopes for the difference they could make.

“I wouldn’t say I’m a huge cryptocurrency expert,” he said. “There is some value in cryptocurrency. I don’t think it’s like the second coming of the Messiah, which some people seem to think.”

Tesla CEO also spoke about China declares crypto transactions illegal and its crackdown on crypto mining. He suggested that the last ban was the result of the The concern of the Communist Party that digital assets threaten its hold.

“It looks like they don’t like cryptocurrency,” he said. “I guess cryptocurrency is fundamentally about reducing the power of a centralized government, and they don’t like it. That’s my guess.”

The energy crisis in China could have played a role in imposing stricter measures by the government, Musk said.

“I think part of it may actually be due to power shortages in many parts of China,” he said. “Much of southern China is currently experiencing random power outages, as demand for electricity is higher than expected. “

The billionaire You’re here CEO revealed in February that the electric vehicle maker had made a $ 1.5 billion bet on bitcoin, and would accept cryptocurrency as payment for cars. But only three months later, Tesla reversed his decision and stopped accepting bitcoin payments given that its energy-intensive impact on the environment was worrying.

The “Musk Effect” rocked the crypto ecosystem earlier this year, when nearly every related tweet from Tesla’s boss sent token prices skyrocketing or plummeting. Swisher asked him if he thought the influence of his tweets on crypto prices was a good thing.

“If it’s going up, I guess it is,” Musk said.

Read more: Top 16 shares even this week on Reddit: Tesla takes off, Camber Energy explodes higher and SoFi Technologies sees growing interest

Read the original article on Business intern


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