ECB Warns Trump’s Crypto Push Could Threaten EU Financial Stability

President Donald Trump’s pro-crypto stance could destabilize the European economy. The warning comes amid rising momentum in the U.S. for digital asset adoption, including stablecoin regulation and executive support from the White House.

Policy Paper Flags Stablecoin Risks

According to a confidential ECB policy paper viewed by Politico, officials worry that Trump’s “lavish support” for the U.S. crypto sector—particularly for dollar-pegged stablecoins—may lead to a financial contagion in Europe. The report warns that these digital assets could divert capital flows and compromise the EU’s broader efforts to modernize its financial infrastructure.

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At the heart of the ECB’s concern is the rapid expansion of dollar-backed tokens, which are poised to grow significantly following proposed U.S. legislation and regulatory clarity. These tokens, if left unchecked, could undermine the euro’s role in digital finance.

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