Elon Musk tells US government on crypto regulation: ‘Do nothing’

At the Code Conference in Beverly Hills last September 28, Tesla CEO Elon Musk was asked by New York Times columnist Kara Swisher on his opinion about government regulation in the US crypto market, to which Musk replied, ‘I would say, do nothing.’ 

In the report, Musk believes that the US government should steer clear of crypto regulations for the moment. This was just one of the questions the billionaire was asked aside from his opinion on the recent crackdown in China. 

‘It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement,’ Musk added in his comment. 

This statement is a possible nod to the regulatory frameworks that were pitched by people like Securities and Exchange Commission (SEC) Chairman Gary Gensler earlier this year. These aim for the use of crypto to be regulated by governing bodies in the United States like the SEC. 

‘There is no authority to register and write rules to protect the investing public. The investing public would benefit from more regulation,’ Gensler said in a statement in May 2020. The Department of Treasury in the US has also included a section on cryptocurrencies in their latest tax plan. 

As of now, the United States does not have any strict or specific rules on the use and regulation of digital currencies. Most crypto platforms and transactions fall under general regulations that also apply to fiat transactions. 

Musk is known to be an avid crypto supporter and has made waves over the past year in his support for Dogecoin and other digital currencies as well. Earlier this year, Tesla bought $1.5 billion worth of Bitcoin which nearly doubled after a few months. 

Moreover, Tesla announced in February 2020 that it would be accepting Bitcoin as a mode of payment for purchases made in the company. However, the decision was retracted just three months later due to environmental concerns. 

Musk has recently said that Tesla will most likely accept crypto as a mode of payment in the future. ‘I think there’s some value in cryptocurrency, but I wouldn’t say it’s the second coming of the Messiah,’ he commented. 

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