European Central Bank: The US relaxation of cryptocurrency regulation may lay the groundwork for a future financial crisis

ChainCatcher news, 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 the January monetary policy meeting, the ECB mentioned that the Trump administration's lenient stance on crypto assets could pose long-term risks, including issues related to leverage and overvaluation. The ECB pointed out that the deregulation of the U.S. financial system, particularly in the realm of crypto assets, could exacerbate financial stability risks and even lay the groundwork for future financial crises.

Recently, there has indeed been a relaxation of regulations in the U.S. crypto market, such as the SEC withdrawing multiple 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 could pose a long-term threat to global financial stability.