Elon Musk Suggests U.S. Should Not Regulate Crypto

On Tuesday, Elon Musk said the U.S. government should point out clearly why it wants to regulate the crypto market.

In Beverly Hills, California, at the Code Conference, Musk said that in his opinion, it is less probable to destroy crypto. However, governments can slow down its advancement.

Kara Swisher, a columnist from New York Times, was questioning Musk on stage. Her question was if the U.S. government should get involved in the process of regulating the crypto industry.

Early this year, Tesla announced that it had obtained around $1.6 billion worth of bitcoin. The benefit of those holdings grew to about $2.6 billion as bitcoin prices climbed. However, Bitcoin, with other cryptocurrencies, has fallen after that.

Musk, who, on Twitter, has repeatedly promoted his attention and support for multiple digital assets, is optimistic about the purpose of crypto in reducing the error in the money systems. However, he acknowledged that he is a huge crypto expert and thinks there’s some power in it. However, he could not say that it is a survivor or a replacement of messiah.

Musk on Crypto Crackdown

Musk also discussed the role of China in the crypto industry, whether it is mining or regulation.

Last week, China’s central bank announced stricter measures in its broader crypto crackdown plan, including monitoring crypto-related transactions.

Musk talked about some possible reasons for this outcome and decision. He said that it might be a reason for electricity shortages in many regions of China. As information, he added that, for example, in the southern region, people experience random power interruptions as the power demand is higher than produced. He added that this process might be a reason for Crypto mining. 

Musk said that, in his opinion, crypto is on the way to reducing the power of a centralized government, which China does not like.