The European Securities and Markets Authority (ESMA) has issued a warning about the growing impact of cryptocurrency on traditional financial markets. As crypto becomes more intertwined with conventional finance, ESMA's executive director, Natasha Cazenave, highlighted potential risks of sharp price drops affecting the broader financial system. Currently, crypto accounts for just 1% of global financial assets, but its rapid evolution demands close monitoring. Despite Europe's slower crypto adoption compared to the US, retail interest is rising, prompting calls for tighter regulations like the MiCA framework.