According to ChainCatcher and Cointelegraph, the European Central Bank (ECB) expressed concerns about the aggressive policies supporting the cryptocurrency industry in the United States, warning that the surge of US dollar stablecoins could undermine the stability of the European financial system.
The European Central Bank is calling for modifications to the recently implemented Markets in Crypto-Assets Regulation (MiCA). The bank is worried that US reform initiatives supported by Trump could lead to an influx of US dollar stablecoins into the European market, causing capital outflows to US assets, thereby damaging the EU's financial sovereignty and exposing banks to liquidity risks.
In response, some officials believe these warnings are exaggerated. Two diplomats and an EU official stated that despite the US plans to introduce the Stablecoin Transparency and Accountability Legislation (STABLE) and the Guiding National Innovation and Establishing US Stablecoin Act (GENIUS), the existing MiCA framework is sufficient to manage stablecoin risks.
