European Central Bank Warns: Weak Cryptocurrency Regulation, Trump’s Policy Stance May Trigger Financial Risks
Recently, the European Central Bank (ECB) expressed concerns over the weak regulation of cryptocurrencies, suggesting that under President Trump's support for cryptocurrencies, it may lead to financial instability.
Meanwhile, the European Central Bank and the European Commission have differing views on whether the new EU cryptocurrency rules can withstand the financial risks posed by a potential Trump return.
According to POLITICO, the European Central Bank warns that Trump’s support for the U.S. cryptocurrency industry could trigger a financial "tsunami," emphasizing the urgent need for reform in the regulation of crypto assets. The central bank stated that existing regulations are too lenient on the "multi-party issuance" model, while the new policy allows for collaboration between European and non-European stablecoin issuers.
ECB President Christine Lagarde emphasized that the MiCA regulation urgently needs revision and hinted that the European Commission and other EU institutions have "recognized" the unique threat posed by stablecoins.
However, a member of the European Commission holds a different view, believing that the risks posed by global stablecoins "seem to be overstated and can be effectively controlled under the current legal framework."
An EU official stated that the ECB’s claims regarding the run risk associated with stablecoins being 1:1 convertible with assets are purely "nonsense," accusing the ECB of exaggerating the threat of dollar stablecoins to promote the digital euro project that the ECB will launch in October.
In summary, the ECB is concerned that the surge in dollar-backed stablecoins could lead to these stablecoins dominating the market, potentially attracting European capital into U.S. debt, thereby undermining the EU's financial independence.
At the same time, the bank also warned that European issuers may be forced to redeem euros and foreign tokens, thus putting euro reserves at risk of being "run".
This indicates that the debate over financial autonomy has transcended mere technical discussion and may have risen to the level of geopolitical economic strategy.
What are your views on the ECB's warning? Can the MiCA framework really withstand cross-border financial risks? Could dollar stablecoins become a "Trojan Horse" for U.S. financial influence?