The European Central Bank (ECB) has expressed concern about the potential impact of significant US support for the cryptocurrency industry.
The institution has warned that an increase in dollar-backed stablecoins could destabilize the European financial system.
In a policy paper obtained by Politico, the ECB calls for a review of the Markets in Crypto-Assets Regulation (MiCA) for cryptocurrencies, just months after its launch.
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Its concern is that US reforms supported by President Donald Trump could flood European markets with dollar-denominated stablecoins.
The ECB fears this could lead to European capital moving into US assets, undermining the EU's financial independence and exposing banks to liquidity risks.