ECB flags risk of financial contagion from US crypto push

The ECB is calling for changes to MiCA, only months after the regulatory framework was implemented.

Update April 22, 2:17 pm UTC: This article has been updated to include comments from Cato Institute analyst Nicholas Anthony.

The European Central Bank (ECB) raised an alarm over potential fallout from aggressive US support for the crypto industry, warning that a surge in dollar-backed stablecoins could destabilize Europe’s financial system.

According to a policy paper seen by Politico, the ECB has asked for a revision of the Markets in Crypto-Assets Regulation (MiCA) framework for cryptocurrencies just months after it came into effect.

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