ECB Flags Trump’s Crypto Push as Potential Threat to Europe’s Financial Stability

The European Central Bank (ECB) has expressed concern about U.S. President Donald Trump’s growing support for cryptocurrencies. It warned that this stance could pose serious risks to the European financial landscape.

Since returning to the White House, Trump has positioned himself as a vocal backer of the American crypto industry. While this has energized the U.S. digital asset space, European regulators are growing uneasy about the potential consequences.

ECB Flags Trump’s Crypto Push as Threat

A recent Politico report highlights growing unease within the European Central Bank over the U.S. government’s supportive stance on cryptocurrency. An ECB official expressed concern that Washington’s endorsement of dollar-pegged stablecoins could pose significant financial risks, particularly for jurisdictions outside the United States.

At the center of this concern is the rising dominance of dollar-backed stablecoins, which now account for over 99% of the global $240 billion stablecoin market. The official warned that a renewed Trump administration could accelerate the proliferation of these assets, potentially flooding the European market with digital dollars.

Such a shift, they argue, would challenge the EU’s financial autonomy and expose gaps in its regulatory framework. While the European Union has taken a proactive stance by enacting the Markets in Crypto-Assets Regulation (MiCA), the ECB believes that the legislation is not fully equipped to address emerging stablecoin models.

Specifically, it falls short in overseeing decentralized, multi-issuer stablecoin ecosystems, an area in which the U.S. appears poised to take the lead. The ECB fears that without stronger safeguards, the EU could struggle to contain the systemic impact of an expanding dollar-based digital economy.

U.S. House Advances Stablecoin Bill

Trump’s shift on crypto has become a notable development in the sector. Once labeling Bitcoin a scam, he publicly supported the industry during the 2024 U.S. elections, which helped bolster his electoral campaign and reignited hope among crypto advocates.

Notably, that momentum is spilling into policy. The U.S. House Financial Services Committee has passed the Securing Transparency and Assuring Lawful Banking (STABLE) Act. The bill aims to bring regulatory clarity to dollar-backed stablecoins, such as Tether (USDT) and Circle (USDC).

The bill passed after a thirteen-hour session led by Chair Representative French Hill and Subcommittee Chair Representative Bryan Steil. It cleared the committee with a 32-17 vote, marking a key step in stablecoin regulation.