Musk: "US Government Should Not Regulate Cryptocurrency"

[Asia Economy Reporter Yujin Cho] Elon Musk, CEO of Tesla, said that the U.S. government should not attempt to regulate the cryptocurrency market.

On the 28th (local time), according to the U.S. economic media CNBC, Musk stated at the 'Code Conference' held in California, "Government regulation may slow down the development speed of cryptocurrencies, but destruction is impossible."

When asked whether the U.S. government should intervene in the cryptocurrency market, he replied, "I want to say 'do nothing.'"

Regarding the recent regulatory moves on cryptocurrencies by Chinese authorities, he said, "Such regulations may be related to China's recent power shortage," adding, "The demand for electricity for mining is high, causing random blackouts in southern regions of China."

Musk's remarks came amid strengthened cryptocurrency regulations in China and indications of possible regulations in the U.S.

Earlier, Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), said there are hundreds of places where cryptocurrencies can be traded and thousands of types of tokens, warning, "If they remain outside the regulatory scope, it will not end well."

Earlier this year, Tesla purchased $1.5 billion (about 1.78 trillion KRW) worth of Bitcoin, increasing the value of its Bitcoin holdings to $2.5 billion (about 2.96 trillion KRW) in the second quarter, but it recently declined due to market fluctuations.

Musk has promoted Bitcoin and Dogecoin by revealing Tesla's Bitcoin holdings. In particular, in July, he disclosed that he personally holds Ethereum and Dogecoin along with Bitcoin.