Updated 10 Aug, 2021

Elon Musk Opposes Amendment Seeking to Regulate Crypto



Key Takeaways:

  • Elon Musk chimes in on the debate over crypto regulation proposed by Senators
  • Coinbase CEO Brian Armstrong and Elon Musk oppose the legislation seeking to tax crypto

Elon Musk and Brian Armstrong Discuss Latest Crypto Tax Amendment

Tesla and SpaceX chief Elon Musk has joined the heated discussion over a proposal to regulate the cryptocurrency industry. The topic of the discussion is centered on the latest effort by US lawmakers in the Senate. Lawmakers aim to introduce a largely controversial legislation over what part of the digital asset space should be regulated.

After the White House officially backed what became known as the Portman-Warner amendment, crypto circles and individual crypto advocates, including Coinbase CEO Brian Armstrong, and billionaire entrepreneur Elon Musk, have rallied against it.

The Portman-Warner amendment is looking to force proof of stake validators to comply with harsh regulatory requirement, but is not asking the same from proof of work miners. The proposed legislation has faced backlash from the crypto community ahead of the vote on the amendment set for today.

Brian Armstrong and Elon Musk discussed the matter over a Twitter thread. The Coinbase CEO argued against Senator Warner’s proposed amendment. Armstrong said that the legislation “would decide which foundational technologies are OK and which are not in crypto.” He concluded his Twitter post by saying “This is disastrous.”

No Need for Hasty Legislation, Tesla and SpaceX CEO Says

In reply, Elon Musk who recently said Tesla could restart accepting Bitcoin, commented by saying he agreed with Mr. Armstrong. “This is not the time to pick technology winners or losers in cryptocurrency technology,” he posted, adding “There is no crisis that compels hasty legislation.”

Coinbase CEO Brian Armstrong continued by pointing out that the Senate is ultimately trying to decide “which types of crypto should survive government regulation.”

Also, Mr. Armstrong warned that if the amendment is approved by Senators, the US could “see future development of blockchain technology move offshore to countries China.”

“If the U.S. fails to embrace the innovation happening in crypto, it risks becoming a financial backwater, missing out on one of the fastest growing sectors of the economy,” the Coinbase CEO explained. “Imagine if we had missed out on the internet, and the largest internet companies had been built overseas,” he concluded.

Moreover, Andreessen Horowitz, a top investor in crypto startups, said the proposed crypto measure would be a “stunning loss for America and our ability to remain the innovation epicenter of the world”.