Emre Yumlu 
The European Central Bank (ECB) has issued a warning that growing US support for the crypto industry could trigger financial turbulence within the European financial system. The institution is calling for a review of the recently implemented MiCA regulations across Europe.
ECB Raises Concerns Over Dollar-Backed Stablecoins
According to a policy document reviewed by Politico, the ECB has suggested a reassessment of the Markets in Crypto-Assets (MiCA) regulatory framework. The primary concern stems from new crypto-related legislation supported by US President Donald Trump, which may lead to an influx of dollar-pegged stablecoins into the European market.
The ECB argues that such a scenario could prompt European capital to shift toward US assets, undermining the EU’s financial sovereignty and exposing banks to liquidity risks.
Diverging Views Among EU Institutions on MiCA
While the ECB pushes for tighter regulations, the European Commission considers these concerns overstated. According to the report, some EU diplomats and officials believe the current MiCA rules are robust enough to address stablecoin-related risks.
New bills introduced in the US—STABLE (Stablecoin Transparency and Accountability for a Better Ledger Economy) and GENIUS (Guiding and Establishing National Innovation for US Stablecoins)—are expected to expand America’s presence in the global crypto market. Still, the Commission maintains that these developments alone do not warrant immediate regulatory changes in Europe.
One diplomat stated, “The Commission was very clear on this; most countries are not in favor of rushing into changes based solely on these developments.”
What’s Next?
As the ECB emphasizes the need to adapt regulations to protect the EU’s financial structure, and the Commission urges caution, the future of European crypto policy may hinge on how these internal disagreements unfold. The debate highlights the growing complexity of balancing innovation and regulation in a rapidly evolving global crypto landscape.
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