Elon Musk suggests US Government to “Do Nothing” regarding crypto regulations

Elon Musk came back for crypto’s rescue at the Code Conference in Beverly Hills, California this Tuesday. Tesla CEO, Elon Musk warned the U.S. government against their expanding crypto crackdown, reinstating that they should “Do Nothing” to slow down the crypto industry to a strict regulatory framework.

“It is not possible to, I think, destroy crypto, but governments can slow down its advancement,” Musk responded to the New York Times journalist’s question about whether the U.S. government should be involved in regulating the crypto sphere or not. “I would say, ‘Do nothing,’” he added.

Musk on Chinese Crypto Crackdown

Musk has also commented on the Chinese crypto crackdown. He stated that the reason behind Chinese regulators’ anti-crypto stance could be two-fold. Tesla CEO noted that one of the biggest triggers for China’s crypto crackdown could be the electricity shortage in the country. The government blames virtual currency businesses like mining for the ongoing power outages in South China. Furthermore, Musk also emphasized that being an authoritarian nation, the government could feel threatened by the decentralized and democratic nature of crypto.

“Part of it may be due to electricity shortages in many parts of China…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.”, said Musk. “I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government…They don’t like that.”, he added.

Earlier this year, Elon Musk revealed during the B-Word conference that both his companies, SpaceX and Tesla were holding Bitcoin (BTC). This comment came as a surprise to many instead of Tesla’s former stance against Bitcoin when the company reversed its earlier announcement of accepting payments in Bitcoin. While Tesla CEO is back on track being one of the most prominent and powerful crypto supporters, he also highlighted that it is irrational to expect the decentralized system to resolve all the society’s problems.

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