ECB flags risk of financial contagion from US crypto push
The ECB is calling for changes to MiCA, only months after the regulatory framework was implemented.
The European Central Bank (ECB) raised an alarm over potential fallout from aggressive US support for the crypto industry, warning that a surge in dollar-backed stablecoins could destabilize Europe’s financial system.
According to a policy paper seen by Politico, the ECB has asked for a revision of the Markets in Crypto-Assets Regulation (MiCA) regulatory framework for cryptocurrencies just months after it came into effect.
The concern is that US reforms backed by President Donald Trump could flood European markets with dollar-denominated stablecoins.
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