The European Central Bank has lifted an alarm about President Donald Trump’s pro-Crypto agenda and warns that a wave of dollar-supported Stablecoins could threaten financial stability in the eurozone and overwhelm the new crypto-controlling framework of the EU.
In a confidential policy document obtained by PoliticsThe ECB urged the European Commission to re -visit the markets in Crypto Assets Regulation (MICA) and to worry that the current rules can be too flexible to prevent the effects of aggressive American crypto reforms.
The reforms include two proposed laws, the stable and ingenious actions, which analysts can push dollar-supported Stablecoin Supply at Standard Chartered Forecast to $ 2 trillion by 2028, an increase of approximately $ 240 billion at the moment.
Fear of “infection”
Mica, who came into force earlier this year, was announced as the world’s first extensive crypto regulation. However, the ECB now argues that it can be insufficient to protect the EU against the overflow of a rapidly growing American stabile sector.
ECB president Christine Lagarde and Chief Piero Cipollone of digital payments have both expressed their concern that the rise of Stablecoins supported by the US could cause a shift in savings from euro to dollars, so that the EU-monetary sovereignty can be exposed if the European banks can be rescued risks.
The Paper of the Central Bank specifically criticized the reimbursements of Mica for “multi-tosuance” structures, where EU-based issents can collaborate with foreign companies to expand the distribution of the Stablecoin.
It warned that such frameworks could enable dollar-supported tokens to dominate the EU markets, describing it as an “oligopolistic” structure that promoted non-EU em posting and European exposure to the American treasury debt increases.
Commission defends the existing legislation
The European Commission strongly disputed the ECB’s position and claimed in its own newspaper that the Central Bank had misinterpreted Mica.
According to the report, commission officials have argued that the Regulation already includes provisions to limit the risks of stabilecoins with foreign support and emphasized that crypto companies must meet strict requirements to operate within the EU.
Said the EC in its refutation:
“The risks arising from such global stablecoins seem to be exaggerated and are manageable under the existing legal framework.”
It pointed to successful enforcement actions, such as Tether’s (USDT) deletion of some trade fairs, as proof of the effectiveness of the Regulation.
The committee also emphasized that so far only one worldwide Stablecoin had been approved and that the ECB retains the authority to block tokens that threaten the stability of payment systems or monetary policy.
Despite the disagreement, both institutions agree on the importance of rigorous enforcement and recognize the geopolitical implications of the US government’s efforts to internationalize the dollar through crypto -innovation.
The tension emphasizes the broader strategic fear within the EU about its financial independence, because Trump’s crypto-friendly policy and continues to use digital dollars in unstable economies abroad.