Elon Musk, CEO of Tesla, said there is no crisis forcing hasty regulation of cryptocurrencies. He agreed with Coinbase CEO Brian Armstrong that the US government should not pick winners or losers in cryptocurrency innovation.
Tesla CEO Elon Musk joins the heated discussion about the US government choosing winners and losers in the crypto space. It follows the White House’s approval of a $1 trillion cryptocurrency tax change in an infrastructure bill opposed by the crypto industry and some lawmakers.
The Tesla CEO responded to a Twitter thread launched by Coinbase CEO Brian Armstrong about cryptocurrency tax changes “that will determine which major technologies are good and which are not in cryptocurrency,” Armstrong wrote. “This is a disaster.”
Musk tweeted, “Agreed that this is not the time to pick winners or losers in cryptocurrency technology.” He added: “There is no crisis forcing hasty regulation.”
Armstrong stated, “Senator Mark Warner requested evidence from Promise Checkers to accomplish the impossible, but there was no evidence of the work of the miners. Why? It’s not clear, but we can decide with the Senate which types of cryptocurrencies will survive state regulation. “
Given the backlash from the crypto industry and other lawmakers, Senator Warner revised the proposed changes on Saturday. While it no longer limits Validator exceptions to proof of operation, it has not protected protocol developers by requiring them to report transactions to the Internal Revenue Service (IRS) as Coinbase did.
The Coinbase CEO also warned that if Senators voted in favor of Senator Mark Warner’s amendment, “we will see the future developments of blockchain technology shift overboard in countries like China, which are currently adopting it,” he said.
If the United States does not accept the innovation taking place in cryptocurrencies, it risks becoming a financial prison and losing one of the fastest growing sectors of the economy. Imagine if we missed the internet and the biggest internet companies started overseas.
Do you agree with Elon Musk and Brian Armstrong? Let us know in the comments section below.