The European Central Bank (ECB) has raised alarm over the potential fallout from the United States’ aggressive support for the crypto industry, warning that a surge in dollar-backed stablecoins could destabilize Europe’s financial system.
According to a policy paper seen by POLITICO, the ECB has asked for a revision of the Markets in Crypto-Assets Regulation (MiCA) regulatory framework for cryptocurrencies just months after it came into effect.
At the center of the dispute is the concern that US reforms, backed by President Donald Trump, could flood European markets with dollar-denominated stablecoins.
The ECB fears this could trigger a flight of European capital into US assets, undermining EU financial sovereignty and exposing banks to liquidity risks.
ECB and European Commission Clash Over MiCA Rules
While the ECB calls ...
24h Most Popular
Utilities