Speaking at the Code Conference in Beverly Hills, California on Tuesday (September 28), Musk told audience members that financial regulators should steer clear of trying to hinder crypto adoption.
Musk was asked by New York Times columnist Kara Swisher whether the U.S. government should be involved in regulating the crypto space. The Tesla CEO said it was “not possible” for governments to destroy crypto, but noted they could play a role in stymying innovation.
As reported by CNBC, Musk said:
It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement.
He continued, saying his advice to the U.S. government would be to “do nothing.”
Musk, who has fluctuated in his bullish support for cryptoassets on Twitter following Tesla’s $1.5 billion purchase of Bitcoin earlier in the year, elaborated on his interest in the technology of digital assets:
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.
Musk also commented on China’s crackdown on crypto mining, saying the decision was likely related to “significant electricity generation issues,” in the country. He explained that electricity shortages and power outages, particularly in South China, were potentially being exacerbated by crypto mining.
He noted that crypto assets were fundamentally aimed at reducing the power of centralized governments, presenting a challenge for Chinese authorities. “They don’t like that,” said Musk.