PANews reports on April 1st that according to CoinDesk, the joint report released by the EU's three major regulatory agencies, including ESMA, points out that the increasingly crypto-friendly policy stance of the United States is deepening the linkage between crypto assets and traditional financial markets, which may enhance systemic risks. The report mentions that the expected deregulation policies from the US are likely to drive volatility in crypto valuations, and without corresponding safeguards, this could trigger negative spillover effects on traditional finance. European Central Bank officials have also called for the development of a digital euro to address the high volatility of crypto assets and the global expansion of US dollar-dominated stablecoins.