Policy, EU, European Union, ESMA, EBA, US, TradFi “This crypto-friendly stance has the potential to accelerate crypto adoption, including by institutional investors,” an ESMA spokesperson stated.
The U.S.’ crypto-friendly stance may improve the extent of danger in monetary markets by deepening the connections between conventional finance (TradFi) and the digital asset financial system, in line with regulator the European Securities and Markets Authority.
“This crypto-friendly stance has the potential to accelerate crypto adoption, including by institutional investors,” a spokesperson for the European Union’s monetary markets regulator stated in an interview. “This would in turn increase interconnectedness and, failing relevant safeguards, risks of negative spillover effects between crypto and traditional markets.”
Since changing into president on Jan. 20, Donald Trump has ordered his administration to arrange a bitcoin reserve and urged it to ascertain crypto friendly policies. The crypto market had already reacted positively to Trump’s election victory in November, and bitcoin (BTC) climbed to a report excessive round $109,000 on the day he was sworn in, CoinDesk knowledge confirmed.
In a joint report published Monday, ESMA, the European Banking Authority and the European Insurance and Occupational Pensions Authority recognized “volatile crypto-asset valuations, driven by expectations of U.S. deregulatory policy agenda; increasing interconnections to traditional financial markets,” as a key driver in monetary markets.
Separately, Piero Cipollone, an govt board member of the European Central Bank urged for a digital euro, an ECB-backed digital model of the one forex, to substitute for crypto property, which he described as being “highly volatile and speculative in nature.”
“Furthermore, the United States’ push to maintain the dollar’s global dominance through the promotion of stablecoins worldwide presents its own set of challenges,” he stated.
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