ECB Official Warns U.S. Crypto Policies May Spark Global Financial Turmoil

JUST IN: ECB Official Warns: US Crypto Policies Could Ignite Global Crisis: The U.S. is “sowing the seeds of future upheavals,” an ECB official warns, claiming its crypto policies could ignite the next global financial crisis and destabilize markets worldwide. ECB Official… pic.twitter.com/xq49TZgydN

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Talking to La Tribune Dimanche, Villeroy highlighted Europe’s more restrictive regulatory framework, saying it brings more stability. He contrasts this with the US’s evolving policies which could lead to systemic shocks affecting the whole world.

U.S. Pushes Crypto Into National Strategy

The Biden administration has made bold moves to put crypto into the national strategy. Former President Donald Trump had signed an executive order to create a strategic bitcoin reserve, to secure the US’s position in the crypto economy.

Key legislative actions include:

• BITCOIN Act: Introduced by Senator Cynthia Lummis, proposing the U.S. acquire 1 million BTC (~5% of total supply).

• State-Level Reserves: Texas Senate passed SB 21, supporting a state-run bitcoin treasury.

• Regulatory Shifts: The SEC has dropped legal actions against multiple crypto firms following former Chair Gary Gensler’s departure.

This is a big departure from previous administration’s crypto skepticism and means crypto is now part of the US financial system.

🚨 JUST IN: ECB official warns US crypto policies could spark a global crisis. How might this impact the crypto market worldwide? 🌍🔥
❓ Will the US strategy destabilize markets? #ECB #CryptoRisk

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Europe Seeks Stronger Financial Independence

Villeroy said beyond financial stability, Europe must strengthen the euro’s global role. He called for a unified European savings and investment strategy to reduce the US dollar’s dominance as the reserve currency.

• The ECB aims to attract more international investors to the euro.

• European leaders are pushing for stronger integration of financial policies across the bloc.

• Fragmented regulatory approaches have slowed progress in making the euro a dominant global currency.

Villeroy’s remarks underscore growing European concerns about the U.S.’s unchecked expansion into digital assets, reinforcing calls for tighter oversight to protect financial stability worldwide. Whether the ECB’s approach will shield Europe from potential shocks remains uncertain.