European Central Bank: Relaxing cryptocurrency regulation in the United States may lay hidden dangers for future financial crises
According to Bitcoin.com, the European Central Bank (ECB) recently revealed that it is evaluating the impact of a more decentralized cryptocurrency ecosystem on financial markets. In a memo from the January monetary policy meeting, the European Central Bank mentioned that the Trump administration's loose stance on cryptocurrency assets may pose long-term risks, including issues of leverage and overvaluation. The European Central Bank has pointed out that the deregulation of the US financial system, especially in the cryptocurrency sector, may exacerbate financial stability risks and even lay hidden dangers for future financial crises. Recently, the regulation of the US cryptocurrency market has indeed been relaxed, for example, the US SEC has withdrawn multiple lawsuits against cryptocurrency exchanges. Despite the rapid development of the cryptocurrency market, the ECB remains cautious about its risks and regulatory issues, believing that it may pose a long-term threat to global financial stability.