BlockBeats News, April 22nd, according to Cointelegraph, the European Central Bank (ECB) has expressed concerns about the U.S.'s supportive and aggressive policies towards the cryptocurrency industry, warning that the surge of USD stablecoins could destabilize the European financial system.
The ECB is calling for amendments to the recently enacted Markets in Crypto-Assets Regulation (MiCA). The bank is concerned that U.S. reform efforts supported by Trump could lead to an influx of USD stablecoins into the European market, causing European capital outflows to U.S. assets, thus undermining EU financial sovereignty and exposing banks to liquidity risks.
In response, some officials believe that these warnings are exaggerated. Two diplomats and one EU official have stated that despite the U.S.'s plans to introduce the Stablecoin Transparency and Accountability Act (STABLE) and the U.S. Stablecoin National Innovation and Stabilization Act (GENIUS), the existing MiCA framework is sufficient to manage stablecoin risks.
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