The European Central Bank warns of the risk of financial crisis spreading due to the US push for cryptocurrency policies

According to Cointelegraph, the European Central Bank (ECB) has issued a warning about the potential consequences of aggressive US support for the cryptocurrency industry, stating that the surge in US dollar stablecoins could disrupt the stability of the European financial system. According to a policy document obtained by POLITICO, just a few months after the regulatory framework of the Crypto Asset Market Regulation (MiCA) came into effect, the European Central Bank requested its revision. The core of the controversy is that the US reforms supported by President Trump may flood the European market with stablecoins denominated in US dollars. The European Central Bank is concerned that this may trigger a flow of European capital to US assets, weaken the EU's financial sovereignty, and expose banks to liquidity risk. The European Central Bank has warned that without stricter restrictions, European issuers may face redemption pressure from both EU and foreign holders, which could trigger a financial "run" and damage relevant institutions. Mikko Ohtamaa, co-founder and CEO of Trading Strategy, said that such concerns are justified, however, the EU had a first mover advantage in regulation, but they messed it up; Due to the restrictive rules of MiCA being influenced by banking and traditional financial lobbying, no EU stablecoin has global competitiveness.