{"id":23295,"date":"2025-04-22T15:23:57","date_gmt":"2025-04-22T12:23:57","guid":{"rendered":"https:\/\/forklog.com\/en\/ecb-warns-of-financial-contagion-risk-from-us-crypto-policies-reports-politico\/"},"modified":"2025-04-22T15:23:57","modified_gmt":"2025-04-22T12:23:57","slug":"ecb-warns-of-financial-contagion-risk-from-us-crypto-policies-reports-politico","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/ecb-warns-of-financial-contagion-risk-from-us-crypto-policies-reports-politico\/","title":{"rendered":"ECB Warns of &#8216;Financial Contagion&#8217; Risk from US Crypto Policies, Reports Politico"},"content":{"rendered":"<p><span data-descr=\"European Central Bank\" class=\"old_tooltip\">ECB<\/span> fears that US President Donald Trump&#8217;s support for the crypto industry could trigger &#8216;financial contagion&#8217; and harm Europe&#8217;s economy. This is reported by <a href=\"https:\/\/www.politico.eu\/article\/european-commission-livid-ecb-warn-crypto-apocalypse-donald-trump\/\">Politico<\/a> citing an internal document from the regulator.<\/p>\n<p>The bank is concerned about the potential strengthening of dollar-backed stablecoins. According to the ECB, the existing MiCA regulations in the EU may not be stringent enough to adequately protect the region&#8217;s economy.<\/p>\n<p>The European Commission has questioned the ECB&#8217;s conclusions, suggesting a possible overestimation of risks. According to Politico, an EU official believes that such statements by the regulator are being used to promote the digital euro.<\/p>\n<p>The ECB also fears that the adoption of the <a href=\"https:\/\/forklog.com\/en\/news\/us-house-of-representatives-to-vote-on-stablecoin-regulation-bill\">STABLE Act<\/a> and <a href=\"https:\/\/forklog.com\/en\/news\/david-sacks-prioritizes-bitcoin-reserve-assessment\">GENIUS Act<\/a> could increase capital outflows to the US, and European issuers may face the threat of mass redemption requests for stablecoins, risking &#8216;runs&#8217; on their reserves.<\/p>\n<p>Back in March 16, ECB Governing Council member Fran\u00e7ois Villeroy de Galhau <a href=\"https:\/\/forklog.com\/en\/news\/ecb-member-warns-us-of-cryptocurrency-policy-risks\">stated<\/a> that US policies on cryptocurrencies and non-bank financing could lead to a new financial catastrophe.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ECB fears that US President Donald Trump&#8217;s support for the crypto industry could trigger &#8216;financial contagion&#8217; and harm Europe&#8217;s economy. This is reported by Politico citing an internal document from the regulator. The bank is concerned about the potential strengthening of dollar-backed stablecoins. According to the ECB, the existing MiCA regulations in the EU may [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":23294,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1410,733,36,807,26],"class_list":["post-23295","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ecb","tag-europe","tag-regulation","tag-stablecoins","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"7","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/23295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=23295"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/23295\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/23294"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=23295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=23295"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=23295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}