Musk, Gensler and Rubini spoke about the regulation of the crypto market, and the BTC rate shows growth

Musk believes US authorities should refrain from regulating the crypto industry

Elon Musk believes that the American authorities should stay away from the regulation of the crypto market. The head of Tesla believes that it is impossible to destroy the digital currency, but “governments can slow down its advance.”

Musk believes crypto assets have potential compared to fiat. But they will not solve all the problems of modern society.

“I wouldn’t say that I’m a massive cryptocurrency expert. I think there’s some value in cryptocurrency, but I wouldn’t say it’s the second coming of the Messiah,” Musk said.

In his opinion, the repressive measures taken by the Chinese government against the cryptocurrency industry are associated with “significant problems in the production of electricity.”

“A lot of South China right now is having random power outages, because the power demand is higher than expected. Crypto mining might be playing a role in that,” the businessman said.

In addition, he noted that crypto assets are “focused on reducing the powers of the centralized government,” and this is contrary to the ideology of the Chinese Communist Party.

Roubini: digital assets of central banks will displace cryptocurrencies

Digital assets of central banks, which will be issued within 5–10 years, will supplant cryptocurrencies, says Nouriel Roubini, professor of economics at New York University.

“I think everyone — China, the US Federal Reserve, the central banks of Europe, the UK, Japan and Russia too — have already realized the need to regulate this new asset class. Most civilized countries do not want to live in a world where you can easily transfer money anonymously from the United States to the Seychelles or to any other offshore center without any monitoring. China, of course, will impose bans, but I think over the next months you will see that the US, Europe, the UK, Japan, and other emerging markets will want to somehow streamline this area. Probably, all this will lead to a decrease in the value of some of these assets. But I don’t think they will die at all,” said the expert.

In addition, he noted that “Bitcoin today is simply an unreliable store of value.” Roubini stated about the existence of “10 thousand different cryptocurrencies that are not a real currency. 80% of them, according to research, were created for fraudulent purposes. “

The head of the Securities and Exchange Commission said that the cryptocurrency “will end badly”

The head of the SEC Gary Gensler believes that the digital currency “will not end well if it remains outside the regulatory space.” According to the chairman of the Securities and Exchange Commission, the American digital asset market is represented by many “trading floors and lending platforms”, where there are “not only dozens, but hundreds, and sometimes thousands of tokens.”

Gensler said that “people will suffer” if the crypto industry is allowed to function without regulatory oversight and “outside the regulatory framework.” Previously, he expressed the opinion that some of the crypto platforms, for example, Coinbase, conduct transactions with different tokens, which are actually securities.

“At the moment, we just don’t have enough investor protection in crypto finance, issuance, trading or lending. The crypto industry is more like the Wild West or the old buyer beware world that existed before securities laws were passed,” Gensler said.

Punitive measures of the Chinese authorities in relation to the crypto industry will not hinder the development of bitcoin

Last night, the value of BTC fell below $41,000. But today, September 30, the bitcoin rate is rising again, despite the recent sanctions by the Chinese authorities against the crypto industry. According to Coinmarketcap, the first cryptocurrency is worth $42,852.

Experts believe that the People’s Republic of China government is taking various measures to ban publicly issued crypto assets in order to spread the digital yuan. However, the recent actions of the People’s Bank of China are unlikely to have a significant impact on the market in the long term.

Decentralized platforms are seeing significant increases in trading volumes. It is assumed that such sites will dominate if the US authorities tighten the regulation in relation to the crypto market.