Tesla Inc chief executive officer Elon Musk thinks US regulators should take cryptocurrency out of their crosshairs, leaving it free to “fly,” he told a conference in Beverly Hills, California, on Tuesday.
The colorful serial entrepreneur, an outspoken digital money fan, shared his view at the Code Conference as governments around the world fret over cryptocurrency threatening their control of financial systems.
Asked by interviewer Kara Swisher what US regulators should do about cryptocurrency, Musk said: “I would say, do nothing.”
Photo: Reuters
“I would actually say, just let it fly,” he added.
US Securities and Exchange Commission Chairman Gary Gensler said earlier at the conference that there is potential for cryptocurrency to be considered a security, and platforms to be seen through the lens of those regulations.
Last week, the White House nominated Saule Omarova to lead the US Office of the Comptroller of the Currency (OCC), all but confirming that US financial regulators would be void of any crypto allies for at least the next three years.
The Cornell University law professor’s critiques of digital tokens fit right in with statements that have recently emerged from government watchdogs.
Also last week, China’s central bank said all financial transactions involving cryptocurrencies are illegal, sounding the death knell for the digital trade in the country after a crackdown on the volatile currencies.
“It is not possible to destroy crypto, but it is possible for governments to slow down its advancement,” Musk said during the on-stage interview.
The global values of cryptocurrencies, including bitcoin, have fluctuated massively over the past year, in part due to Chinese regulations, which have sought to prevent speculation and money laundering.
“It would appear they don’t love cryptocurrency; it’s subtle, but hinting in that direction,” Musk said, referring to the crackdown in China.
“I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government, and they don’t like that,” he added.
Part of China’s concern could also be over electricity shortage problems, as mining cryptocurrency uses massive amounts of power, Musk said.
While the outlook for crypto has changed markedly since the end of former US president Donald Trump’s administration, the reversal has been particularly sharp at the OCC, which regulates national banks including JPMorgan Chase & Co and Citigroup Inc.
Under former acting US comptroller of the currency Brian Brooks, who stepped down in January, the OCC had granted limited bank charters to cryptocurrency firms — raising concerns among traditional Wall Street players that they might soon face a new slate of competitors.
Yet Acting US Comptroller of the Currency Michael Hsu pulled up the welcome mat.
If Omarova is confirmed by the US Senate, the OCC would likely go even further in pursuing stricter oversight of digital tokens and tougher rules.
Additional reporting by Bloomberg
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