ECB concerned over U.S. stablecoin policy, fears MiCA may fall short
The European Central Bank has expressed concern that President Donald Trump’s pro-crypto stance, particularly his administration’s support for dollar-backed stablecoins, could destabilize the European financial system, according to a policy paper seen by Politico.
The ECB’s warning centers around fears of “financial contagion”, a term often associated with systemic failures like those following the collapses of FTX, BlockFi, and Terra Luna. Officials argue that Trump’s approach could spur capital flight to U.S. stablecoin products, undermining European monetary sovereignty and increasing risk exposure to non-EU markets.
Commission disputes ECB’s take
The European Commission, however, is reportedly pushing back on the ECB’s interpretation, suggesting that the central bank may be overstating the threat as it seeks broader political support for its digital euro initiative.
At the heart of the dispute are two pending U.S. legislative proposals, the STABLE Act and the GENIUS Act, which would extend the reach of USD-backed stablecoins globally. ECB officials fear that these could clash with Europe’s Markets in Crypto-Assets (MiCA) regulation, particularly its limits on foreign-currency stablecoins.
One EU official reportedly accused the ECB of using the stablecoin issue as political leverage to promote its controversial digital euro rollout.
