Elon Musk Urged The US Government to Do Nothing with Crypto Regulations

Elon Musk Urged The US Government to Do Nothing with Crypto Regulations

Tesla’s CEO – Elon Musk – believes authorities are unable to “destroy” the digital asset industry. He advised the American government to let crypto “fly” instead of implementing legislation on it. Additionally, he gave his reasons why China has a hostile stance on cryptocurrencies.

‘Just Let It Fly’

In a recent interview with Kara Swisher, the prominent entrepreneur and business magnate – Elon Musk – shared his thoughts on some of the hottest topics in the digital asset space.

While admitting that he is not a “massive cryptocurrency expert,” Tesla’s founder opined that bitcoin and the altcoins are valuable to the financial network as they can “reduce the error and latency in the money system.”

Another merit is the decentralized nature of digital assets, which makes it difficult for authorities to control them:

“You know, when governments can’t keep the hand out of the cookie jar and edit the money database, there’s probably some value to that.”

With that said, Musk urged the American government not to regulate cryptocurrencies. He went further, saying that doing nothing would be the best-case scenario:

“I would say, do nothing. I would actually say, just let it fly.”

In fact, Tesla’s CEO believes authorities are not capable of ruining the crypto industry. They can only stagnate its progress, he added:

“It is not possible to destroy crypto, but it is possible for governments to slow down its advancement.”

It is worth noting that at the beginning of August, shortly before the crucial vote on digital asset taxation from US Congress, Musk put his name next to those who opposed implementing a regulatory framework on crypto. Back then, the entrepreneur said, “this is not the time to pick technology winners or losers in cryptocurrency technology,” as there is “no crisis that compels hasty legislation.”

Elon Musk, Source: NYTimes

Why China Does Not Like Crypto?

According to Musk, there are two main reasons why the government of the most-populated country has a hostile stance on digital assets.

First, bitcoin and the altcoins are a threat to the Communist Party of China that wants to keep its centralized power:

“Cryptocurrencies are aimed at reducing the power of the centralized government and they don’t like that.”

Additionally, China, especially the southern part of the nation, has significant electricity generation issues as the power demand is higher than expected. Keeping in mind the energy consumption that crypto mining requires, it is no wonder why the local government banned the asset class, he concluded.