European Central Bank Warning: US Push for Crypto Policy May Spread Financial Crisis Risk

The European Central Bank (ECB) has issued a warning about the consequences of the United States' aggressive support for the cryptocurrency industry, stating that the surge in dollar stablecoins could destabilize the European financial system. According to a policy document obtained by POLITICO, just months after the Markets in Crypto-Assets Regulation (MiCA) framework came into effect, the ECB has called for its revision. At the heart of the controversy is the US reform, backed by President Trump, which could flood the European market with dollar-denominated stablecoins. The ECB is concerned that this could lead to European capital flowing towards American assets, undermining the EU’s financial sovereignty and exposing banks to liquidity risks. The ECB warns that without stricter limitations, European issuers may face redemption pressures from both EU and foreign holders, potentially triggering a financial "run" and harming associated institutions.