According to a POLITICO report, the European Central Bank and the European Commission are debating whether the rules for managing cryptocurrencies are strong enough to withstand Trump's full-scale impact. A policy document shows that the European Central Bank is requesting a revision of the Markets in Crypto-Assets (MiCA) regulatory framework a few months after its implementation. The core of the dispute is the concern that under President Donald Trump's support, US reforms might lead to an influx of dollar-denominated stablecoins into the European market. The European Central Bank is worried that this could trigger capital flight from Europe to US assets, thereby undermining EU financial sovereignty and exposing banks to liquidity risks.
However, the European Commission refuted this, rejecting the European Central Bank's alarmist analysis, indicating a misunderstanding of the EU's own rules and pushing back against the central bank's unwelcome legislative intrusion.
