PANews reported on February 28 that according to Bitcoin.com, the European Central Bank (ECB) recently revealed that it is evaluating the impact of a more deregulated cryptocurrency ecosystem on financial markets. In a memorandum of a January monetary policy meeting, the ECB mentioned that the Trump administration's loose stance on crypto assets could bring long-term risks, including leverage and high valuations. The ECB pointed out that the deregulation of the U.S. financial system (especially in the field of crypto assets) could exacerbate financial stability risks and even lay the groundwork for future financial crises.
Recently, the regulation of the US crypto market has indeed been relaxed. For example, the US SEC has withdrawn several lawsuits against cryptocurrency exchanges. Despite the rapid development of the cryptocurrency market, the ECB remains cautious about its risks and regulatory issues, believing that it may pose a long-term threat to global financial stability.
