Tesla CEO Elon Musk says U.S. government should avoid regulating crypto

Tesla CEO Elon Musk on Tuesday said the U.S. government should steer clear of trying to regulate the crypto market.

“It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement,” Musk said at the Code Conference in Beverly Hills, California.

Musk was responding on stage to a question from New York Times columnist Kara Swisher. She asked whether the U.S. government should be involved in regulating the crypto space.

“I would say, ‘Do nothing,'” he said.

Tesla said early this year that it had purchased $1.5 billion worth of bitcoin. The value of those holdings swelled to about $2.5 billion in the second quarter as bitcoin prices surged. Bitcoin has since dropped, along with other cryptocurrencies.

Musk, who has frequently touted his support for various digital coins on Twitter, is bullish on the role of crypto in potentially reducing the “error and latency” in the legacy money systems. But he acknowledged that crypto doesn’t have all the answers to society’s ills.

“I wouldn’t say that I’m a massive cryptocurrency expert,” said Musk. “I think there’s some value in cryptocurrency, but I wouldn’t say it’s the second coming of the Messiah.”

Musk on China’s crypto crackdown

Musk also addressed China’s role in crypto mining and regulation.

Last week, China’s central bank spelled out tougher measures in its wider crypto crackdown, including souped-up systems to monitor crypto-related transactions.

Musk said the heavy hand likely has to do with the country’s “significant electricity generation issues.”

“Part of it may actually be due to electricity shortages in many parts of China,” said Musk. “A lot of South China right now is having random power outages, because the power demand is higher than expected.”

“Crypto mining might be playing a role in that,” he said.

At a higher level, the decentralized nature of cryptocurrencies may present a challenge for the Chinese government.

“I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government,” Musk said. “They don’t like that.”

Related Stories

Enjoying my content?

Join the exclusive subscription today and get premium articles for free

Discover

U.S. House committee nears contempt vote on Trump aide...

World7 minutes ago (Oct 19, 2021 07:01PM ET) (C) Reuters. FILE PHOTO: Former White House...

Activision Blizzard fired 20 employees following harassment claims

Stock Markets18 minutes ago (Oct 19, 2021 06:50PM ET) (C) Reuters. The entrance to the...

Haiti gang seeks $1 million per person for kidnapped...

World19 minutes ago (Oct 19, 2021 06:50PM ET) (C) Reuters. An entrance to the Christian...

FBI raids Washington, New York homes linked to Russia’s...

Economy21 minutes ago (Oct 19, 2021 06:47PM ET) 2/2 (C) Reuters. FILE PHOTO: Russian tycoon Oleg...

Texas refinery workers voting on Exxon contract offer that...

Economy11 minutes ago (Oct 19, 2021 05:58PM ET) 2/2 (C) Reuters. FILE PHOTO: The Exxon corporate...

Exclusive: Investor group to pressure utilities on net zero...

Commodities3 minutes ago (Oct 19, 2021 06:06PM ET) 2/2 (C) Reuters. FILE PHOTO: Smoke and steam...

Popular Categories