The U.S. Government Should Not be Involved in Regulating Crypto: Elon Musk

Elon Musk, the iconic founder of Tesla, has made headlines again following his recent stance about the need for the US government to regulate the cryptocurrency ecosystem.

As reported by CNBC, Elon Musk, speaking at the Code Conference in Beverly Hills, California, said the government should steer clear of trying to regulate the nascent crypto ecosystem.

In his remarks, Elon Musk believes governments cannot stop the advancement of cryptocurrencies. However, he pointed out that they can slow down the rate of growth of the ecosystem.

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

Elon Musk is one of the major personalities in the cryptocurrency ecosystem. While he was celebrated for leading Tesla to inject $1.5 billion into repurchasing Bitcoin in February, he has also been criticized for propounding the FUD bordering on Bitcoin’s energy usage. The FUD back then contributed to the plunge in the price of Bitcoin and eventually the broader cryptocurrency industry.

“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.”

At the conference, the Tesla and SpaceX boss also dwelled on the current outlook of the cryptocurrency industry with Chinese regulators. According to Musk, China’s stance on cryptocurrencies is perhaps linked to the role the digital assets are playing in the “significant electricity generation issues” the country is currently facing.

“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.” China has experienced a massive power outage and restriction due to the high demand for electricity in Northeastern provinces recently, hitting thousand of households and manufacturing activites.

Musk’s stance, as usual, is an uncommon position and is coming when the SEC is welcoming new leadership with the broad aim of bringing regulations to the digital currency industry.