EU regulators: US promotion of crypto-friendly policies may increase risks to traditional financial system

According to a CoinDesk report, the EU's three major regulatory bodies, including ESMA, pointed out in a joint report released on April 1st that the increasingly crypto-friendly policy stance of the United States is deepening the correlation between crypto assets and traditional financial markets, which may increase systemic risks. The report mentioned 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.