From Cointelegraph
April 22, 2025 05:51 am:

The European Central Bank (ECB) is concerned about the potential destabilization of Europe’s financial system due to aggressive US support for the crypto industry. The ECB fears that an increase in dollar-backed stablecoins could lead to a flight of European capital into US assets, threatening EU financial sovereignty.

The ECB has called for a revision of the Markets in Crypto-Assets Regulation (MiCA) regulatory framework for cryptocurrencies. The European Commission disagrees with the ECB’s concerns, stating that the existing MiCA framework is robust enough to manage stablecoin risks despite potential US policies aimed at expanding America’s crypto footprint.

The stablecoin sector currently has a valuation of $234 billion, with the ECB warning that European issuers could face redemption pressures without stricter limits, potentially leading to a financial “run.” Tether, the issuer of the world’s largest stablecoin, USDt, has been critical of the MiCA regulation and has faced delistings from major European exchanges due to noncompliance.

Read more at Cointelegraph: ECB flags risk of financial contagion from US crypto push