According to analysts, the European Union could be at regulatory disadvantage with the US and destabilize the financial system of the block for possible capital output.
ANDThe European Central Bank (ECB) He turned on an alarm signal against the impulse that Donald Trump’s government could give to the crypto industry in the United States. The central concern of the European agency focuses on the possible mass income of Stablecoins backed by dollars To the markets of the European Union, which, as it warns, could destabilize the financial system of the block.
According to a policy document cited by Politicalhe ECB requested to review the new regulatory framework of cryptactive markets (MICA), Although he entered into force just a few months ago. The fear is that the advancement of bills in the US, such as the Stable Law and the Genius Law – both with the support of Trump – foster a greater issuance of Stablecoins That, when circulating widely in Europe, they end up causing a capital escape to US assets.
The expansion of these digital assets could, according to the ECB, undermine the EU financial sovereignty and generate liquidity risks in local banks if European issuers face pressures of redemption by both local and international holders. In the worst scenario, this could lead to a financial run.
Europe analyzes regulating cryptocurrencies
Europe continues in the target of criticism for its regulation to cryptocurrencies
However, Within the block there is no consensus on the need to modify the current regulations. The European Commission dismissed the warnings of the ECB, considering them exaggerated. “The commission was quite clear that it had different opinions on this issue,” said one of the European diplomats consulted by Politicalhe added that there is no sufficient support between the member states to boost a hurried review of Mica.
Currently, the market of Stablecoins It reaches a value of 234,000 million dollars, according to CoinmarketCap data. But none Stablecoin issued under European regulation still achieved a competitive position globally, due to the restrictions imposed by Mica. This was expressed by Mikko Ohtamaa, CEO of Trading Strategy, who held on social networks that the block “lost the advantage” that he had when he was the first to regulate, leaving the free path for the US to take the front.
Tether, the company behind the Stablecoin More used in the world (USDT), it was also critical of the European regime. His CEO, Paolo Ardoino, warned that the requirement to maintain at least 60% of reserves in EU bank accounts could, far from reducing risks, introducing systemic tensions both for both Stablecoins as for the banking system in general.
Source: Ambito
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