According to Foresight News, a debate has emerged between the European Central Bank (ECB) and the European Commission regarding the adequacy of cryptocurrency regulations to withstand potential impacts from U.S. President Donald Trump. A policy document reveals that the ECB is advocating for revisions to the Markets in Crypto-Assets (MiCA) regulatory framework, which came into effect months ago.
The central issue of the debate is the concern that U.S. reforms, backed by President Trump, could lead to an influx of dollar-denominated stablecoins into the European market. The ECB fears this could trigger capital flight from Europe to U.S. assets, undermining EU financial sovereignty and exposing banks to liquidity risks.
However, the European Commission has dismissed the ECB's alarming analysis, suggesting that the central bank has misunderstood the EU's own regulations. The Commission has countered the ECB's unwelcome legislative intervention, defending its stance on the matter.
