“It is not possible to, I think, destroy crypto,” Musk told New York Times columnist Kara Swisher during the Code Conference in Beverly Hills, California. “But it is possible for governments to slow down its advancement.”
Instead, he believes that regulators should simply “do nothing” and “just let it fly.”
His comments come as the chairman of the Securities and Exchange Commission, Gary Gensler, has referred to cryptocurrencies as the “Wild West” of digital assets and has pushed for greater regulation in the United States. Meanwhile, China launched its own crypto crackdown last week, declaring all transactions and mining activities in the country illegal.
Musk weighed in on China’s ban, noting that part of it likely has to do with the country’s “significant electricity generation issues.”
“A lot of South China is having random power outages because the power demand is higher than expected,” he explained. “Crypto mining might be playing a role in that.”