Updated 29 Sep, 2021

Elon Musk Says US Government Should “Do Nothing” for BTC Regulation

car, bitcoin coin and notepadon a grey and purple background Elon Musk Says US Government Should “Do Nothing” for BTC Regulation

Key Takeaways:

  • Tesla and SpaceX CEO says the US government should not step in and regulate bitcoin
  • Elon Musk said he believes cryptocurrencies have a major function in the financial system

Musk Speaks Out Again

Elon Musk, the richest person on earth and a vocal bitcoin supporter, said on Tuesday the US government should steer clear from trying to impose regulations on cryptocurrencies. Mr. Musk spoke at the Code Conference in Beverly Hills, California. During the conference, he addressed regulatory impact, pressures from China, and his outlook for crypto.

Mr. Musk said he believes cryptocurrencies will play an important role in mainstream finance. Having been in PayPal since the company’s founding, Elon Musk said the traditional money system has many issues. On that note, he believes bitcoin and cryptocurrencies have the potential to reduce “error and latency” that are part of everyday financial operations.

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

He also took some time to answer questions. A journalist from the New York Times asked what he thought the US government should do in order to regulate cryptocurrencies. “I would say, ‘Do nothing,’” he briefly said.

China’s Role In The Crypto World

The US government and the Securities and Exchange Commission have been working around the clock in recent months, trying to figure out how to regulate the crypto industry. While there are no regulations over the nascent market, SEC Chair Gary Gensler has said this space must enter a regulatory framework if it is to continue growing.

The Tesla and SpaceX CEO also addressed China’s role in the cryptocurrency world. Citing recent crackdown efforts from China, Elon Musk said it would not be possible, in his opinion, to destroy crypto. However, he mentioned that it is possible for “governments to slow down its advancement.”

The eccentric billionaire said he thinks the reason for the outright ban on crypto from China was because of several factors. One, the bitcoin mining process requires a lot of electricity. In turn, that creates “significant electricity generation issues,” said Mr. Musk.

“A lot of South China right now is having random power outages, because the power demand is higher than expected,” he mentioned.  “Crypto mining might be playing a role in that,” he said.

On a government level, Chinese authorities may feel their centralized currency control could be threatened by bitcoin, which operates in a decentralized environment.

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

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