Dogecoin Bull Elon Musk Says US Should Avoid Regulating Cryptocurrencies, Speculates Reason For China Ban – Dogecoin – US Dollars ($ DOGE), Tesla Motors (TSLA)
Tesla Inc. (NASDAQ: TSLA) CEO and Dogecoin (CRYPTO: DOGE) bull Elon Musk said the U.S. government should avoid regulating cryptocurrencies.
What happened: “I would say, ‘Do nothing,'” Musk said at the Code Conference in California on Tuesday when asked by an interviewer Kara Swisher what approach the US government should take in regulating cryptocurrencies.
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Musk added that he believes it is possible for governments to slow the development of cryptocurrencies but not destroy the sector
The Tesla CEO speculated that China’s regulatory crackdown on cryptocurrencies could be due in part to power shortages in many parts of the country.
“The electricity demand is higher than expected, so crypto mining could be a factor, I’m not sure,” said Musk.
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Why it matters: Musk’s comments gain momentum as the U.S. government regulates the cryptocurrency sector.
The chairman of the US Securities and Exchange Commission Gary Gensler has said that the regulator is working to create new rules to protect investors in the volatile crypto market and that tokens listed on crypto trading platforms should be treated as securities.
Musk is a huge supporter of Bitcoin (CRYPTO: BTC) as well as Dogecoin and often tweets about cryptocurrencies, especially the latter. The tech tycoon was a major catalyst in Dogecoin’s rise this year.
Price action: Bitcoin is down 0.9% in the past 24 hours and is trading at $ 42,282.01 at press time, while Dogecoin is down almost 0.8% in the 24 hours to $ 0.2002.
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Photo: Courtesy of Daniel Oberhaus on Flickr