European Central Bank: The US relaxing cryptocurrency regulation may lay the groundwork for future financial crises

According to Bitcoin.com, the European Central Bank (ECB) recently revealed that it is assessing the impact of a more deregulated cryptocurrency ecosystem on financial markets. In a memorandum from a January monetary policy meeting, the ECB mentioned that the Trump administration's relaxed stance on crypto assets could pose long-term risks, including leverage and overvaluation issues. The ECB pointed out that deregulation in the U.S. financial system (especially in the field of crypto assets) could exacerbate financial stability risks and even lay hidden dangers for future financial crises.

Recently, regulation in the U.S. crypto market has indeed been relaxed, such as when SEC withdrew multiple lawsuits against cryptocurrency exchanges. Despite rapid development in the cryptocurrency market, ECB remains cautious about its risks and regulatory issues, believing they may pose long-term threats to global financial stability.